Shyam Metalics initiated its operations in 2002. Thus the company has been active in the field for almost 2 decades. In this timeline the company has managed to get itself a first position in production of ferro alloys. It also ranks in 4th position in sales of Sponge Iron. Thus the company is a major underdog and has high growth potential. In its reports Shyam Metalics Has initiated in its aim of increasing its installed capacity from 5.7 MTPA to almost 11.5 MTPA.
The company has tie ups with major domestic companies such as Jindal Steel. It also serves international Players such as POSCO Intl, JM Global Resources, Norecom Limited and many more. The company is spread across 13 states and 1 U.T. in India with more than 40 major distributors.
IPO DETAILS
The IPO is set to get launched on 14th June, 2021. The subscription timeline extends till 16th June, 2021. The size for Shyam Metalics IPO is 909 Crore Rs. Shares issued through Offer for sale are 657 Crore Rs. Shares worth 202 Crore Rs are issued through Fresh issue. The minimum lot size is 45 shares and the price is set at 303 Rs. – 306 Rs./ share. The company is going to get listed at both the exchanges NSE and BSE. The face value per share is Rs. 10 and this is a book built issue. The registrar for the company is Karvy Fintech Private Limited.
TABULAR REPRESENTATION OF IPO DETAILS
| IPO OPENING DATE | 14th June, 2021 |
| IPO CLOSING DATE | 16th June, 2021 |
| ISSUE TYPE | Book Built Issue |
| Face Value per share | 10 Rs |
| IPO price band | 303 Rs. – 306 Rs. |
| LOT SIZE | 45 shares |
| MINIMUM ORDER QUANTITY | 45 shares |
| ISSUE SIZE | 909 Crore Rs. |
| OFFER FOR SALE | 657 Crore Rs. |
| FRESH ISSUE | 252 Crore Rs. |
| LISTING AT | BSE, NSE |
| LISTING DATE | 24th June, 2021 |
IMPORTANT DATES
| IPO OPENING DATE | 14th June, 2021 |
| IPO CLOSING DATE | 16th June, 2021 |
| IPO ALLOTMENT DATE | 21st June, 2021 |
| REFUNDS | 22nd June, 2021 |
| DEMAT A/C CREDITED ON | 23rd June, 2021 |
| IPO LISTING DATE | 24th June, 2021 |
The IPO begins for subscription from 14th June, 2021. The IPO subscription would continue till 16th June, 2021. The allotment status for the shareholders who applied would come on 21st June, 2021. The refunds for the ones who did not get allotment would be initiated on 22nd June, 2021. The DEMAT accounts of shareholders would be credited on 23rd June, 2021. The listing of the company would be accompanied on 24th June, 2021.
PROMOTER AND LEAD MANAGERS
There are multiple promoters for the company such as Mahabir Agarwal, Sanjay Agarwal Brij Agarwal, Subham Buildwell Pvt. Ltd, Subham Capital Pvt. Ltd., Kalpataru Finance, Toplight Merchantiles, Narantak Dealcomm and Dorite Tracon. The holding on part of the promoter before IPO allotment was 100.00%. The post-IPO promoter holding would equal 88.35%.
The lead managers for the company are :
- Axis Capital limited
- IIFL Capital Holdings
- ICICI Holdings Limited
- SBI Capital Markets Limited
- JM Financial Consultants Limited
OBJECTIVES FOR THE IPO
- Due to the COVID situation the company and its many subsidiaries have been generating low revenue than expected. The growth for 2020-21 has been very low in comparison to the asset base which has resulted in rise of interest payments. Hence the company wants to utilize the public funding to many payments to the debts and reduce the burden of debt payment.
- The funds can also be utilized to fulfill some general corporate expenses of the company.
COMPANY FINANCIALS
| Particulars (in Million Rs.) | 2019-20 | 2018-19 | 2017-18 |
| ASSETS | 52035 | 40524 | 34705 |
| REVENUE | 43954 | 46485 | 39200 |
| NET PROFIT | 3403 | 6367 | 5280 |
Shyam Metalics has been a consistent performer as seen in its figures of years 2017-19. The company has increased its asset base and given more revenue output than asset increase. The Profits of the company have also boosted with the asset increase. This means that the productivity of a company is functioning in a proper manner.
However given the COVID situation the company has suffered a major hit in its profit generation. The profits have declined and on the contrary the asset base has been increasing constantly. Hence the company is unable to fulfill the asset productivity. This was below level through the year and was surrounded by COVID Crisis. However the company has managed to bag 4500 Crore in profits by end of Dec 2020. This is actually good on behalf of the company’s production. Hence the company looks good for long term and short term investment purposes.
PROS
- Highly ranked company in India in its segment
- Experience of more than 2 decades.
- National and international business reach.
- Production capacity is set to increase in the next 5 years. Hence the company is firm on expanding.
CONS
- More debt payment due to COVID situation.
- Problem of increasing distributors is awaiting if the dream of expansion is to be fulfilled.
HOW TO APPLY FOR IPO WITH ZERODHA
It is very easy to apply for an IPO now if you have a DEMAT account with Zerodha. Follow the steps below for the same :
- Logging into Zerodha console through its website or KITE platform.
- Clicking the IPO link present in the Portfolio section
- Click the Shyam Metalics IPO button and press the BID button
- Entering the details asked for like UPI ID, Quantity and price
- Submit the application form of IPO
- Visiting the application of UPI for approving the transaction
Now, applying for an IPO online is possible with most of the Discount and online brokers.
