Shyam Metalics and Energy Limited (SMEL), a leading integrated metal-producing company based in Kolkata, India, has announced the successful completion of its fundraise, amassing ₹1,385 crores through a Qualified Institutional Placement (QIP). This fundraise far exceeded expectations, with the total bid amount reaching ₹4,055 crores, representing a subscription of 3.5 times the funds received.

Significant Equity Share Allotment to Top Investors

The QIP Committee of SMEL confirmed the allotment of 24,051,165 equity shares, each with a face value of ₹10, to 38 Qualified Institutional Buyers (QIBs) at an impressive issue price of ₹576 per share. This allotment has attracted a roster of renowned institutional investors, further cementing the company’s reputation in the financial markets.

Strategic Financial Movements for Future Growth

Commenting on the successful QIP, B. Bhushan, Vice Chairman and Managing Director of Shyam Metalics, expressed his satisfaction with the results. The QIP not only aligns with SEBI’s minimum public shareholding requirements but also reflects the investors’ trust in the company’s strategic vision. Bhushan emphasized the company’s historical achievement of a CAGR exceeding 15%, and the intention to sustain this growth trajectory without any additional dilution in the coming years.

Impact of the Fundraise on Company Finances

The newly raised funds are set to reduce the working capital limits availed by SMEL from banks, positioning the company as a net cash positive entity. This financial strength is a stepping stone for Shyam Metalics to become one of the few net debt-free companies in the metal sector. The additional capital will empower the company to explore new opportunities and accelerate its growth trajectory.

About Shyam Metalics

Shyam Metalics is a prominent and rapidly growing player in the Indian steel industry, with a focus on long steel products and ferroalloys. Operating primarily in West Bengal and Odisha, the company has made a significant mark in the sector and is well-poised for sustained growth and innovation in the future.

  B. Bhushan, India, Shyam Metalics and Energy Limited