The share price of Shyam Metalics and Energy climbed 2.5 percent to its 52-week high of Rs 355.95 in early trade on June 22 after the company started production at its West Bengal plant.
Shyam Metalics and Energy on June 21 announced the commissioning of additional production capacities at its manufacturing facility at Jamuria, West Bengal. The capacity of the captive power plant has now increased by 90 MW, from 267 MW to 357 MW.
The company sources around 75 percent of its power requirement from the captive plant and the incremental addition will lead to 80 percent of power sourcing internally, which will lead to significant cost savings for it.
It has also boosted its sponge iron production with the commissioning of an incremental capacity of 165,000 TPA, leading to an enhanced total capacity of 2.7 MTPA.
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“We continue to deliver on our ambitious expansion plans. I am happy to announce that with the current addition we have successfully completed the capacity additions we had outlined in our IPO plans. The addition to our captive power plant gives us a significant boost with reliable and low cost power, and we are in an even better position to supply sponge iron which continues to see improving demand,” said Brij Bhushan Agarwal, Vice Chairman and Managing Director of Shyam Metalics.
At 9:29am, Shyam Metalics & Energy was trading at Rs 353.20, up Rs 6.05, or 1.74 percent, on the BSE.