Shyam Metalics and Energy Limited (SMEL) was one of India’s leading integrated metal producing companies; received bids of 2,56,09,43,610 shares against the offered 2,10,90,890 equity shares 5:00 pm data available on the bourses.
The portion reserved for retail investors was subscribed 11.64 times. While the Qualified Institutional Buyer category was subscribed 155.71 times, the Non-Institutional Investor category was subscribed 339.98 times and the Employee Reserved category was subscribed 1.55 times.
The total size of the offer is Rs909cr at the upper price band of Rs306 per share.
The Company raised Rs269.94cr through 21 anchor investors.
Key brokerage houses like Angel Broking, Canara Bank Securities, Hem Securities and Asit C Mehta, IndSec Securities and Ventura have given recommendations of "Subscribe" to the issue for long term perspective while highlighting the key strengths of the company like (a) Integrated operations across the steel value chain (b) Strategically located manufacturing plants supported by robust infrastructure resulting in cost and time efficiencies (c) Diversified product mix with a strong focus on value-added products, such as ferro alloys, association with reputed customers and robust distribution network (d) Strong financial performance and credit. The steel upcycle shall also help in increasing realizations per tonne.
Furthermore, with the governments’ focus on the infrastructure sector Shyam steel is best placed to benefit from the same. Close proximity to the availability of raw materials is one of the most important factors in reducing raw material costs.
ICICI Securities Limited, JM Financial Limited, Axis Capital Limited, IIFL Securities Limited and SBI Capital Markets Limited are the BRLMS to the Offer.
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