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 7,69,49,910 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 5.80 times. While the Qualified Institutional Buyer category was subscribed 0.81 times, the Non-Institutional Investor category was subscribed 2.60 times and Employee Reserved category was subscribed 0.78 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.
Key brokerage houses like Angel Broking, Canara Bank Securities, Hem Securities and Asit C Mehta, IndSec Securities and Ventura have given recommendations of "Subscribe" to the issue for long term perspective while highlighting the key strengths of the company like (a) Integrated operations across the steel value chain (b) Strategically located manufacturing plants supported by robust infrastructure resulting in cost and time efficiencies (c) Diversified product mix with strong focus on value added products, such as, ferro alloys, association with reputed customers and robust distribution network (d) Strong financial performance and credit. The steel up cycle shall also help in increasing realizations per tonne. Furthermore, with the governments' focus on infrastructure sector shyam steel is best placed to benefit from the same. Close proximity to the availability of raw materials is one of the most important factors in reducing the raw material costs.
ICICI Securities Limited, JM Financial Limited, Axis Capital Limited, IIFL Securities Limited and SBI Capital Markets Limited are the BRLMS to the Offer.