Shyam Metals IPO: The issue of Shyam Metallics & Energy has been subscribed 62 per cent on the first day of June 14. However, qualified institutional buyers are yet to make any investments.
According to the subscription details available on the exchange, the company had issued 21 million shares under the IPO, out of which 1.30 crore shares have been auctioned.
The reserve portion for retail investors has been subscribed 1.23 times. On the other hand, 11 per cent bid has been placed in the employees category and 4 per cent in the reserve portion for non-institutional investors.
Anchor portion is not included in this size of IPO. On June 11, the company had raised Rs 2498 crore from its anchor investors.
Shyam Metallics company was started in 2002. The company deals in steel products and ferro alloys. It has three manufacturing plants at Sambhalpur in Odisha and Jamuria and Mangalpur in West Bengal.
In terms of installed capacity, it is the largest producer of ferrous alloys in the country. It is the fourth largest company in the sponge iron industry by capacity of sponge iron as of March 2020.
The issue of metal company Shyam Metallics & Energy opened on June 14 and will close on June 16. Analysts are giving investment advice in its shares. According to market experts, the company’s issue is a good investment opportunity considering the company’s strong financial performance and balance sheet, cost savings through improved operating efficiencies, better productivity, supporting macro economy, capacity expansion and growth prospects.
The company is bringing this IPO to raise Rs 909 crore. Market experts expect the company to have a strong listing in the stock market. The testimony of this is also giving a huge demand for the company’s shares in the gray market. The price band of Shyam Metalics issue is Rs 303-306.
The company will use Rs 657 crore raised through this IPO to pay off the debt of itself and its associate company SSPL. Shyam Metalics has appointed ICICI Securities, Axis Capital, IIFL Securities, JM Financial and SBI Capital as its lead managers for this IPO.
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