The share allocation in Shyam Metalics IPO, which closed last week, is likely to be finalised today. KFIN Technologies is the registrar of the IPO and will manage share allocation and refund. Investors who had applied for Shyam Metalics shares in the IPO can check the allotment status on the KFIN Technologies website. The IPO of Shyam Metalics was subscribed over 120 times with retail subscription at 11.58 times.
Shyam Metalics shares are likely to get listed on June 24.
The qualified Institutional Buyers(QIBs) category was subscribed 155.71 times while non-institutional investors 339.98 times. Investors can also check share allotment status in Shyam Metalics IPO on BSE website once it is finalised.
According to market observers, the grey market premium or GMP of Shyam Metalics is quoting around ₹128-130.
The initial public offer of up to ₹909 crore comprised a fresh issue of up to ₹657 crore and an offer for sale of up to ₹252 crore. The price range for the Shyam Metalics offer was at ₹303-306 per share while the lot size was 45 shares.
ICICI Securities, Axis Capital, IIFL Securities, JM Financial, and SBI Capital Markets were the managers of the offer.
Kolkata-based Shyam Metalics is an integrated metal producing company and has a diversified product mix such as, iron pellets, sponge iron, steel billets, TMT, structural products, wire rods, and ferro alloys. It has three manufacturing plants, one in Odisha (Sambalpur) and two in West Bengal (Jamuria and Mangalpur). The current total installed capacity is 5.71 MTPA and the company plans to ramp up capacity.
According to domestic brokerage Geojit, for FY18-20, Shyam Metalics’ revenue grew at a CAGR of 8% while PAT de-grew by 19.7% CAGR due to expansions underway and COVID related disruptions. It is expected to double its current aggregate installed metal capacity from 5.71 MTPA, as of December 31, 2020, to 11.60 MTPA by FY25.
Geojit had assigned subscribe rating to the Shyam Metalics IPO. “At the upper price band of Rs.306, SMEL is available at EV/EBITDA of 9.1x (FY21 annualized) which appears fully priced. We assign a Subscribe rating, with a short to medium term perspective due to optimistic international prices and rise in domestic demand,” the brokerage said. (With Agency Inputs)
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