Shyam Metalics and Energy makes decent market debut; lists at 24% premium
The stock traded at Rs 380 apiece in opening deals on the National Stock Exchange, compared to the issue price of Rs 306, marking a premium of 24%
Shares of Shyam Metalics and Energy made a decent market debut on Thursday. The stock opened for trading at Rs 380 on the National Stock Exchange, compared to the issue price of Rs 306, marking a premium of 24%. On the BSE, Shyam Metalics and Energy opened at Rs 367, at a premium of 19.93%.
The Rs 909 crore-public issue was subscribed 121.40 times as it received bids for 2,56,11,20,545 shares against the total issue size of 2,10,90,890 shares on offer, according to data available with the NSE. The category reserved for QIBs was subscribed 156 times, non-institutional investors 340 times and portion set aside for retail investors was subscribed 11.62 times.
The Kolkata-based long steel products and ferroalloy focused company sells intermediate and final products across the steel value chain catering to institutional and end-use customers through 42 distributors, brokers across 13 states and one union territory.
It, currently, operates three manufacturing plants that are located at Sambalpur in Odisha, and Jamuria and Mangalpur in West Bengal.
Shyam Metalics and Energy IPO comprised fresh issuance of equity shares worth up to Rs 657 crore and an offer for sale to the tune of Rs 252 crore by existing shareholders.
The company intends to utilize the net proceeds of the fresh issue towards repayment and/or pre-payment, in full or part, of debt of the company and SSPL (Shyam SEL and Power), one of the subsidiaries amounting Rs 470 crore and balance towards general corporate purposes. Gross debt was Rs 886.292 crore at the end of 31 December 2020.