Shyam Metalics and Energy (SMEL) IPO will open for subscription on June 14, 2021 and it will remain available for bidding till June 16, 2021. The metal producer company have fixed Shyam Metalics IPO price at Rs 303 to Rs 306.
Shyam Metalics IPO lot size comprises 45 company shares. Minimum investment limit in the IPO is Rs13,770 while maximum limit for a single bidder is Rs 1,92,780. The public issue is a book build issue with a face value of Rs 10 per shares.
Commenting on the IPO, Prashanth Tapse, VP Research, Mehta Equities, 'We believe SMEL IPO gives investors a unique opportunity to invest in well diversified integrated metal producers serving demands of both B2C & B2B segments globally. We are optimistic on overall rising demand growth from long steel and Ferro alloys as overall prices are forecasted to remain elevated in 2021 on supply shortfall and rising demand. SMEL stands well to encash rising demand with competitive margins which would drive sustainable business as well as profitable growth in the medium to long term.'
'SMEL has well planned to open its IPO in the time the commodity cycle is on an upswing with tailwinds working in the steel makers' favour along with extreme bullishness for the sector which argues for a good listing gain candidate. Considering its competitive strength’s like integrated operations across the steel value chain, diversified product mix with focus on value added products, strategically located plants, focus on exports and low leveraged business model with capacity doubling plan adds a catalyst to future business growth.
'On valuations parse at upper price band (Rs 306/-), the issue is asking for a market cap of Rs 78,050 million with PE (annualised FY21) ~12.83x and P/BV stands at ~2.2x which seems the issue is reasonably priced in line with industry average when compared to its listed peers. Hence, based on all the above aspects we advise investors to 'SUBSCRIBE' Given the prospects of the metals sector and the ongoing momentum in the market, the issue seems to have come at the right time.'
Incorporated in 2002, Shyam Metalics and Energy (SMEL) is a Kolkata based leading integrated metal producing company with a focus on long steel products and ferro alloys. It is amongst the largest producers of ferro alloys in terms of installed capacity in India as on Feb 2021.
SMEL produces intermediate and long products such as iron pellets, sponge iron, steel billets, TMT, structural products, wire rods and ferro alloys products with specific focus on high margin products such as customized billets and specialized ferro alloys for special steel applications.
As of March 2020, SMEL was one of the leading players in terms of pellet capacity and the 4th largest player in the sponge iron industry in terms of sponge iron capacity in India. It has 3 manufacturing units with aggregate operating capacity of 5.70MTPA with 227MW of captive power plant. As on Dec 2020 SMEL have 42 distributors through which SMEL caters across 13 states and 1 union territory.
Disclaimer: IRIS has taken due care and caution in compilation of data for its web site. Information has been obtained by IRIS from sources which it considers reliable. However, IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website.
