Shyam Metalics and Energy Limited raises ₹ 1,385 crores through QIP

Shyam Metalics and Energy Limited (SMEL), a prominent integrated metal-producing company based in Kolkata, has announced the successful completion of its fund raise of ₹ 1,385 crores through a Qualified Institutional Placement (QIP) against the total bid amount received Rs. 4055 Crs representing 3.5 times the fund received.

The QIP Committee at its meeting approved the issue allotment of 24,051,165 equity shares of face value of ₹ 10 each to 38 Qualified Institutional Buyers (QIBs) at an issue price of ₹ 576 per equity share (including a premium of ₹ 566 per Equity Share).

The allotment of equity shares under the Issue sees several renowned institutional investors garnering a significant portion of the Issue.

Speaking on successful completion of QIP, Mr. B. Bhushan, Vice Chairman and Managing Director said, "We are delighted with the successful completion of our QIP, which reflects the trust and confidence that investors have in our strategic decision. This completes our dilution as per minimum public shareholding requirements prescribed by SEBI. We would also like to highlight that our company has consistently achieved a CAGR exceeding 15% in the past and we anticipate sustaining the same growth trajectory by relying on internal accruals, and additionally we do not have any plans for additional dilution over the next few years and we shall continue on this path and this would probably be the last dilution from the promoter group.

The funds raised will bring down the working capital limits availed by the company from banks and we remain a Net Cash positive company and we are poised to become one of the net debt-free company within the metal basket and the same shall empower us to pursue new opportunities and accelerate our growth trajectory. Shyam Metalics remains committed to delivering long-term value to its shareholders, customers, and partners. The successful QIP marks a significant milestone in the company's journey and is well-positioned for a future of sustained growth and innovation".

Shares of Shyam Metalics and Energy Limited was last trading in BSE at Rs. 638.25 as compared to the previous close of Rs. 629.90. The total number of shares traded during the day was 121585 in over 2870 trades.

The stock hit an intraday high of Rs. 642.55 and intraday low of 625.40. The net turnover during the day was Rs. 76949768.00.

Source : Equity Bulls

Keywords

ShyamMetalicsandEnergy QIP FundRaising