Shyam Metalics and Energy Limited ("SMEL", including its subsidiaries and associates, the "Group"), one of India's leading integrated metal producing company; received bids of 2,59,39,755 shares against the offered 2,10,90,890 equity shares, as per the 5:00 pm data available on the bourses.
The portion reserved for retail investors was subscribed 2.19 times. While the Qualified Institutional Buyer category was subscribed 0.00 times, the Non-Institutional Investor category was subscribed 0.70 times and Employee Reserved category was subscribed 0.27 times.
The total size of the offer is Rs. 909 crores at the upper price band of Rs. 306 per share.
The Company raised Rs. 269.94 crores through 21 anchor investors.
12 Domestic Investors including 4 Mutual Funds (MF), 2 Insurance companies and 6 Alternate Investment Funds (AIFs) were allocated a total of 60,45,795 shares for approximately Rs. 185 Crs. These included Nippon MF, Birla MF who were each allocated 9.63% , White Oak 9.26% , Kotak MF and L&T MF were allocated 7.41% each, IIFL and Abakkus were allocated 6.67% and 5.55% respectively. Further Birla Life and Edelweiss Crossover were allocated 3.70%. Nippon AIF, Saint Capital and SBI General were allocated 1.85% each.
9 Foreign Portfolio Investors who participated in the anchor of which Kotak Offshore and GAM UK were allocated 8.15% and 7.78% respectively. Plutus and Miras Investment were allocated 3.33% and 2.94% respectively. Further, IIFL Offshore, Millenium, India Oppurtunities Growth Fund, Aurgin and Dovetail were each allocated 1.85%. In aggregate Investors were allocated 27,75,969 equity shares for approximately Rs 84.94 Crs.
ICICI Securities Limited, JM Financial Limited, Axis Capital Limited, IIFL Securities Limited and SBI Capital Markets Limited are the BRLMS to the Offer.
The Group is a producer of intermediate and long steel products, such as, iron pellets, sponge iron, steel billets, TMT, structural products, wire rods, and ferro alloys products with a specific focus on high margin products, such as, customised billets and specialised ferro alloys for special steel applications. The Group is currently in the process of further diversifying its product portfolio by entering into the segments, such as, pig iron, ductile iron pipes and aluminium foil. The Group's key strength lies in its integrated operations across the steel value chain and strategic locations of its manufacturing plants in Odisha and West Bengal which are well connected by railways, roadways and ports in the eastern region of India and are supported by infrastructure in terms of captive railway sidings and captive power plants.
The Group's manufacturing plants at Sambalpur and Jamuria are forward and backward integrated, and the Group is present across steel value chain, offers a diversified product mix, and has strategic locational advantage. In the nine months ended December 31, 2020, power units produced from the Group's captive power plants accounted for 79.58% of their total power units consumed. The Group has a wide distribution network partnered through 42 distributors across 13 states and one union territory in India, as of December 31, 2020. The Group's domestic customers include Jindal Stainless Limited, Jindal Stainless (Hisar) Limited, and Rimjhim Ispat Limited and international customers include Norecom DMCC, Norecom Limited, POSCO International Corporation, World Metals & Alloys (FZC), Traxys North America LLC, JM Global Resources Limited, Goenka Steels Private Limited and Vijayshri Steel Private Limited.