The public offer of Shyam Metalics and Energy has received subscription of 121.43 times on the final day of bidding, June 16, as investors put in bids for over 256.11 crore equity shares against an offer size of 2.1 crore equity shares.
The portion set aside for qualified institutional buyers has been subscribed 155.71 times and that of non-institutional investors' has been booked 340 times so far.
The reserved portion of retail investors witnessed subscription of 11.64 times and that of employees 1.55 times, showed the subscription data available on exchanges showed.
Shyam Metalics, a leading integrated metal producing company based in India with a focus on long steel products and ferro alloys, opened its Rs 909-crore public issue on June 14, comprising a fresh issue of Rs 657 crore, and an offer for sale of Rs 252 crore by the existing shareholders.
The company has already mopped up Rs 270 crore from anchor investors at higher end of price band of Rs 303-306 per share.
To Know All IPO Related News, Click Here
"At the issue price, the company would trade at P/E of 21x for FY20 which is quite attractive as compared to listed peers. Considering the company's capacity expansion plans and growth prospectus, we recommend ‘subscribe’ for listing and long term gains," said Canara Bank Securities.
The company has plans to increase manufacturing capacities capacity from 5.71 MTPA to 11.60 MTPA by 2025. It has plans to add manufacturing facilities of Ductile Pipe, Blast furnace and Aluminium foil.
Disclaimer: The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.