After a long gap in IPOs, we expect Shyam Metalics IPO in a few upcoming weeks. Shyam Metalics and Energy Limited aka Shyam Metalics IPO produces integrated metals. The main focus of production is ferro alloys and steel products such as iron pellets, wire rods, TMT, and sponge iron.
Shyam Metalics is going to raise Rs. 1,107 Crores through an IPO, including OFS (Offer for Sale) of Rs. 657 Crores and Fresh Issue of Rs. 450 Crores. The retail portion includes 35%, QIB is 50%, and NII is 15%. It will get listed on both NSE and BSE. Many IPOs are going to launch this year check here the list.
They are one of the largest producers of ferro alloys in India. Till the last quarter of FY20, they were the among leading producers of iron pellets and the fourth-leading producer of sponge iron in India as per capacity. Shyam metalics has a strong distributorship to deliver their products to 13 states and 1 union territory. In total, they have 3 manufacturing plants in India located in Odisha, Jamuria, and West Bengal.
Shyam Metalics IPO Dates & Price Band:
|Open date||14th June 2021|
|Close date||16th June 2021|
|Total Size of IPO||₹1,107 Cr.|
|Fresh Issue||₹450 Cr.|
|Offer for Sale||₹657 Cr.|
|Price Band||₹303 – ₹306|
|Face Value||₹10 per share|
|Listing on||NSE and BSE|
|Retail Investor’s Portion||35%|
Shyam Metalics IPO Market Lot:
|Application||Lot||Shares||Cut Off Amount|
Should you subscribe to Shyam Metalics IPO?
- Shyam Metalics is a net debt-free company and has no long-term debts as of December 2020. The debt to equity ratio is 0.27.
- It is among the few debt-free AA-rated steel companies in India.
- They have introduced manufacturing new products like DI pipes. We expect robust growth of 9% to 10% in coming years due to government projects to keep rivers safe under National Clean Ganga Mission.
- The capacity utilization rate is high (80%+) for the past few years and didn’t dropdown. Also in 2020, they expanded more.
- A diversified product portfolio helps them to stay in demand in the steel sector.
- Continuous rising revenues have helped them to achieve great ROE of 12%. As its competitor’s ROE is as followed – JSW steel (10.1%), Tata Steel (1.52%), and SAIL (5.13%).
- Pricing demand is volatile in the steel industry due to its cyclical nature.
- In the Covid pandemic situation, they faced difficulties in transportation of their products to their clients.
Final Verdict –
As we can see Shyam Metalics IPO has very attractive strengths. The best part about the company is the ROE which they are delivering continuously even though the steel sector has cyclical earnings. Their new product portfolio looks pretty attractive as they have got clients for it at the start. Also having a 0.27 debt to equity ratio is quite impressive in such a competitive and cash-rich field. Overall valuations look attractive and the company looks promising for long-term gains.
Shyam Metalics IPO Allotment & Listing Dates:
Allotment Date for Shyam Metalics – 21st June 2021
Refund Date for Shyam Metalics – 22nd June 2021
Credit of Shares to Demat Account – 23rd June 2021
Listing Date for Shyam Metalics – 24th June 2021
Applying Shyam Metalics IPO through the form:
Besides applying IPOs through ASBA application or through Demat accounts you can also apply to IPOs with the help of forms provided by NSE or BSE. This is one of the traditional and safe ways to apply for an IPO subscription. Download the form through this link and fill the form carefully. You have to submit your filled form to the bank or broker.
Financials of Shyam Metalics IPO:
|Year||Revenue (₹ in Cr.)||Expense (₹ in Cr.)||Net Income (₹ in Cr.)|
More about Shyam Metalics –
Shyam Metalics and Energy Limited started in Kolkata in 2002. They have a diversified portfolio which includes iron pellets, wire rods, TMT, and sponge iron. Due to a good clientele portfolio and good distribution process, they never fail to deliver to their clients and this got them more big clients like Jindal Stainless Steel, JSW Steel, SAIL, BHEL, etc. They also have some international clients.
They are the leading producer of integrated steel and ferro alloys in India. They never failed to deliver to their clients and due to this they had maintained their profitability and given positive EBIDTA every financial year. As of December 2020, they were leading manufacturers of iron pellets and fourth in the sponge iron industry in India as per Crisil reports.
Ore to metal (integrated steel) plants are operated in Odisha and West Bengal. At Jamuria, West Bengal they also make railway slidings, iron pellets, wire rods, TMT, and sponge iron. Other Managalpur plant is focused on ferro alloys and sponge iron.
SEL is the brand that consists of its structural and TMT products. They are adding more products like DI pipes and aluminum foils to their portfolio to increase their revenue. The need for DI pipes will be increasing as Government-led projects to keep rivers clean under National Clean Ganga Mission will be using it.
They have shown continuous growth there ROI by delivering 12% as of March 2020. Other competitors ROE – Tata Steel – 1.52%, SAIL – 5.13%, JSW steels – 10.1%
IPO Registrar Details –
KFintech Private Limited
Shyam Metalics Contact Details –
Shyam Metalics and Energy Limited
Phone: +91 33 4016 4000
Frequently Asked Questions on Shyam Metalics IPO –
When will Shyam Metalics IPO open for Investors?
Shyam Metalics IPO will open on 14th June 2021 and will close on 16th June 2021.
What is Shyam Metalics IPO Retail Portion?
The portion allocated for retail investors in Shyam Metalics IPO is 35%
How to apply for Shyam Metalics IPO?
You can apply Shyam Metalics IPO in 3 ways:
Open a Demat account through a bank or brokerage firm and apply through it.
Apply via ASBA application online through your bank.
Fill up the offline IPO form and submit it to the bank or broker.
Should I invest in Shyam Metalics IPO?
The best part about the company is the ROE which they are delivering continuously even though the steel sector has cyclical earnings. Their new product portfolio looks pretty attractive as they have got clients for it at the start. Having a 0.27 debt to equity ratio is quite impressive in such a competitive and cash-rich field. Overall valuations look attractive and the company looks promising in long-term gains.
What is the allotment date for Shyam Metalics IPO?
21st June 2021 is the allotment date for Shyam Metalics IPO.
What is the listing date for Shyam Metalics IPO?
24th June 2021 is the listing date for Shyam Metalics IPO. It will be listed on NSE and BSE.
What is the cutoff price for Shyam Metalics IPO?
The cutoff price for Shyam Metalics IPO is ₹306 per share.