Shyam Metalics IPO Subscribed 3.65 Times On Second Day

The IPO comprises fresh issuance of equity shares worth up to Rs 657 crore and a Rs 252 crore offer for sale by existing shareholders. Shyam Metalics has set a price band of Rs 303-306 a share for its Rs 909 crore-IPO, which will close for subscription on June 16

The initial public offer of Shyam Metalics and Energy was subscribed 3.65 times on the second day of subscription on Tuesday. The company’s Initial Public Offer (IPO) received bids for 7,69,49,910 shares against 2,10,90,890 shares on offer, as per data available with BSE.

The category meant for Qualified Institutional Buyers (QIBs) was subscribed 81 percent while that of non-institutional investors and retail individual investors were subscribed 2.60 times and 5.80 times, respectively. On Friday, the company raised Rs 270 crore from anchor investors.

The IPO comprises fresh issuance of equity shares worth up to Rs 657 crore and a Rs 252 crore offer for sale by existing shareholders. Shyam Metalics has set a price band of Rs 303-306 a share for its Rs 909 crore-IPO, which will close for subscription on June 16.

The company intends to utilize the net proceeds from the fresh issue for repayment or prepayment of debt worth Rs 470 crore and that of its subsidiary, Shyam SEL and Power Ltd, and for other general corporate purposes.

ICICI Securities, JM Financial, Axis Capital, IIFL Securities, and SBI Capital Markets Ltd are the book running lead managers to the issue. The company had tried to tap the capital markets in the past too. It had filed draft papers for an IPO with Sebi in 2018 and also received clearance from the regulator but the listing plan was deferred. The Kolkata-based long steel products and Ferro alloy-focussed company sell intermediate and final products across the steel value chain. 

PTI

Source: Business World