{"id":730,"date":"2021-06-08T13:56:03","date_gmt":"2021-06-08T13:56:03","guid":{"rendered":"https:\/\/www.invest19.com\/blog\/?p=730"},"modified":"2021-06-08T13:56:05","modified_gmt":"2021-06-08T13:56:05","slug":"shyam-metalics-will-hit-the-primary-market-on-june-14-should-you-subscribe","status":"publish","type":"post","link":"https:\/\/www.invest19.com\/blog\/shyam-metalics-will-hit-the-primary-market-on-june-14-should-you-subscribe\/","title":{"rendered":"Shyam Metalics Will Hit The Primary Market On June 14. Should You Subscribe?"},"content":{"rendered":"<div style=\"margin-top: 0px; margin-bottom: 0px;\" class=\"sharethis-inline-share-buttons\" ><\/div>\n<p>Lately, subscribing for IPOs has been a rewarding decision for the\ninvestors. The upward trend Indian markets have forced potential IPO candidates\nto reach the primary market and get bumper listings. No doubt, the recent IPO\u2019s\nhave been rewarded handsome despite their demand of rich-valuations. Promoters of\nthese companies have bagged multi-fold returns through Offer for Sale.\nConsidering, the continuation of upward rally in the markets and outperforming\nmetal sector, Shyam Metalics has decided to enter into the listed market.<\/p>\n\n\n\n<p>The issue size is a mix of fresh issue of Rs. 657 crores and offer for sale of Rs. 252 crore by Subham Capital Private Ltd, Subham Buildwell Private Ltd, Kalpataru Housefin &amp; Trading Private Ltd, Dorite Tracon Private Ltd and Narantak Dealcomm Ltd. According to Draft Red Herring Prospectus, the issue comprises of Rs. 657 crores to be raised from issuance of fresh equity will be utilized for repayment and\/or pre-payment of company and its subsidiary (SSPL)&#8217;s debt fully or partially while the rest will be utilized general corporate purpose.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"counter-hierarchy counter-decimal ez-toc-grey\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\"><i class=\"ez-toc-glyphicon ez-toc-icon-toggle\"><\/i><\/a><\/span><\/div>\n<nav><ul class=\"ez-toc-list\"><li><a href=\"#Shyam_Metalics_and_Energy_Ltd_IPO_Details\" title=\"Shyam\nMetalics and Energy Ltd. IPO Details:\">Shyam\nMetalics and Energy Ltd. IPO Details:<\/a><\/li><li><a href=\"#About_the_Company\" title=\"About the\nCompany\">About the\nCompany<\/a><\/li><li><a href=\"#_Industry_Growth_Drivers\" title=\"&nbsp;Industry Growth Drivers\">&nbsp;Industry Growth Drivers<\/a><\/li><li><a href=\"#Financials\" title=\"Financials\">Financials<\/a><\/li><li><a href=\"#Book_Runners\" title=\"Book\nRunners\">Book\nRunners<\/a><\/li><\/ul><\/nav><\/div>\n\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Shyam\nMetalics and Energy Ltd. IPO Details:<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\"><li>Issuer Company: Shyam Metalics.<\/li><li>Industry: &nbsp;Metals<\/li><li>IPO Size: 909 cr.<\/li><li>Price Band: 303-306<\/li><li>Issue Open Date: 14 June, 21<\/li><li>Issue Close Date: 16 June, 21<\/li><li>Listing Date: 24 June, 21<\/li><li>Minimum Lot Size: 45 shares<\/li><li>Employee Discount: 15 Rs. Per share<\/li><li>Face Value: 10 Rs. Per share<\/li><li>Retail Allocation: 35%<\/li><li>Listing Exchange: NSE, BSE<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>About the\nCompany<\/strong><\/h2>\n\n\n\n<p>Kolkata- based India\u2019s one of largest producer of ferro alloys in\nterms of installed capacity was incorporated in 2002. Shyam Metalics and Energy Limited (SMEL) is India&#8217;s leading integrated\nmetal producer company. It is primarily engaged in the pellets, sponge\niron, steel billets, TMT, structural products, wire rods, and ferro alloys.\nIn the sponge iron segment, Shyam Metalics is the fourth-largest player in\nIndia. The firm has 3 manufacturing plants located in\nSambalpur in Odisha, and Jamuria and Mangalpur in West Bengal. As of Dec 31,\n2020, its manufacturing units have an aggregated installed metal capacity of\n5.71 million tonnes per annum. The company is looking to expand its capacity\nfrom 5.71 MTPA to 11.60 NTPA by 2025.<\/p>\n\n\n\n<p>The company is serving Jindal Stainless Limited,\nRimjhim Ispat Limit and other heavy industries while the global clients of the\ncompany are Norecom DMCC, Norecom Limited, POSCO International Corporation,\nWorld Metals &amp; Alloys, Traxys North America LLC, JM GLobal Resources,\nVijayshri Steel Pvt Ltd, etc<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">&nbsp;<strong>Industry Growth Drivers<\/strong><\/h2>\n\n\n\n<p>Metal stocks have gained a lot of traction this year after the\nprices shoot higher like there is no tomorrow. From large-cap to penny, the\nwhole basket of metal stocks has outperformed the other indices. The rising\ndemand of infrastructure and civil engineering will keep the demand of the base\nmetals intact. The automobile sector is gaining strength again and being the\nleading producer of ferro-alloys, the company will reap the benefits.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Financials<\/strong><\/h2>\n\n\n\n<p>On the financial front, the company had reported a net profit of\n340.3 crores for the year ending 2020. The company has a small amount of Rs.\n351.3 crores in the form of non-current liability is occupied in balance sheet.\nCompany has been consistently showing a rise in the cash flows despite low\ndebt. Metal companies are expected to be highly leveraged but a low-leveraged\nmetal company deserves good premium. Revenues from the direct operations of the\ncompany have fallen a little while the net profits of the company have plunged\nsharply. Considering the upper price band, the company is demanding a P\/E\nmultiple of 21x, higher than the Industry P\/E of 14.55. However, the\nlow-leverage capital structure of the company deserves a little more premium\nvaluation.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Book\nRunners<\/strong><\/h2>\n\n\n\n<p>ICICI Securities, Axis Capital, IIFL Securities, JM Financial and\nSBI Capital Markets are the book running lead managers to the issue.<\/p>\n<div class='epvc-post-count'><span class='epvc-eye'><\/span>  <span class=\"epvc-count\"> 2,165<\/span><\/div><div class=\"pld-like-dislike-wrap pld-template-1\">\n    <div class=\"pld-like-wrap  pld-common-wrap\">\n    <a href=\"javascript:void(0);\" class=\"pld-like-trigger pld-like-dislike-trigger \" title=\"\" data-post-id=\"730\" data-trigger-type=\"like\" data-restriction=\"ip\" data-ip-check=\"0\" data-user-check=\"1\">\n                        <i class=\"fas fa-thumbs-up\"><\/i>\n                    <\/a>\n    <span class=\"pld-like-count-wrap pld-count-wrap\">7    <\/span>\n<\/div><\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>Lately, subscribing for IPOs has been a rewarding decision for the investors. The upward trend Indian markets have forced potential IPO candidates to reach the [&hellip;] <span class=\"read-more-link\"><a class=\"read-more\" href=\"https:\/\/www.invest19.com\/blog\/shyam-metalics-will-hit-the-primary-market-on-june-14-should-you-subscribe\/\">Read More<\/a><\/span><\/p>\n","protected":false},"author":1,"featured_media":731,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[70,2,7],"tags":[],"class_list":["post-730","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ipo","category-stock-market","category-investment"],"_links":{"self":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/730","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/comments?post=730"}],"version-history":[{"count":1,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/730\/revisions"}],"predecessor-version":[{"id":732,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/730\/revisions\/732"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/media\/731"}],"wp:attachment":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/media?parent=730"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/categories?post=730"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/tags?post=730"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}