IPO

Shyam Metalics IPO : Everything to Know About The IPO and Company

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.