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Shyam Steel Industries Limited IPO Dates, Size, Allotment, Bid Details, GMP & DRHP

Let’s have a detailed review of the company and analytics of the Shyam Steel Industries Limited IPO release date, IPO offer price, subscription, Shyam Steel Industries IPO allotment, grey market price and other details like the company’s background, its financial positions, its promoters and other related things.


Shyam Steel Industries IPO Review & Ratings

IPO Ratings & Review
CriteriaRatings
Industry Sentiments7.5/10
Industry Ranking8.1/10
Company Background8.3/10
Company Reputation8.2/10
Competitive Edge7.7/10
Financial Statements8.1/10
Popularity Index8.4/10
Promoters Reputation7.7/10
Retail Appetite8.1/10
Top Brokers Review7.9/10
Overall Ratings7.9/10
Star Ratings★★★★☆

Summary of Shyam Steel Industries IPO

Shyam Steel Industries Limited IPOThey are one of the leading premium branded thermo mechanically treated rebar (“TMT Rebar”) players in India having integrated steel plants and a strong brand identity and recall amongst end customers (source: CRISIL Report). They are primarily involved in the production of TMT Rebar with backward integration in sponge and billet and sale of premium TMT bars (long steel products) in India (source: CRISIL Report).

In the institutional segment, they sell quality TMT Rebar for projects of large government entities including public sector undertakings, National Highway Authority of India (“NHAI”), railways, military engineer services, Nuclear Power Corporation of India (“NPCI”) and various state governments. They have delivered strong and consistent financial growth by maintaining low leverage since Fiscal 2016.

They have derived 75.97%, 71.82%, 72.17% and 79.25% of the revenue from sale of products for TMT Rebar and allied products in the nine months period ended December 31, 2018, Fiscal 2018, Fiscal 2017 and Fiscal 2016. As on March 31, 2019, the aggregate installed iron and steel production capacity of their Steel Manufacturing Plants was 1,584,656 MTPA, including an installed TMT Rebar production capacity of 641,960 MTPA.

Owing to their extensive and strong dealer distribution network and strong brand identity, they have developed a strong retail segment through which they have derived 57.72%, 55.91%, 47.33% and 50.21% of their revenue from sale of TMT Rebar and allied products in the nine months period ended December 31, 2018, Fiscal 2018, Fiscal 2017 and Fiscal 2016, respectively.

From FY 2015-16 to FY 2018-19 till 31-Dec-18, as per the Restated Financial Statements

During the FY16-FY18 period, SSIL’s average net margin of 2.8% has been higher than the average margins of large as well as mid sized players compared in the set which stood at 1.4% and -3.7% respectively.

SSIL’s rebar production has grown at healthy pace to reach 0.46 MT in FY19 from 0.24 MT in FY16. Resultantly the company’s utilization levels have improved from 65% in FY16 to 83% in FY19. The annual production capacity of the company, too has increased from 0.32 MMTPA in FY14 to 0.64 MMTPA as of FY19. As a result of capacity addition in FY19, there is drop in the capacity utilizations from 94% in FY18 to 83% for FY19.

Over the past three fiscals (FY15-FY18 period), SSIL’s annual revenue has grown at a CAGR of 24% which is considerably higher than the CAGR of large and mid-sized players in the Industry. Annual revenue of large players grew at a CAGR of 11% in the past three years, while for mid-sized players, the CAGR recorded was 10%. When compared with large players in the set (JSPL,JSW,RINL,SAIL,TATA), SSIL’s has exhibited the best CAGR of revenue growth of 24% during FY15-FY18.

The Promoters of this company are Purushottam Beriwala, Govind Beriwal, Lalit Beriwala, Ravi Beriwala, Brijesh Beriwala and Manish Beriwala. The book running lead managers to the issue are Axis Capital Limited, Edelweiss Financial Services Limited, IIFL Holdings Limited and SBI Capital Markets Limited and the Registrar to this issue is Link Intime India Private Limited.



Shyam Steel Industries IPO Date

The opening and the closing date of Shyam Steel Industries Limited IPO is not known yet.


Shyam Steel Industries IPO Subscription

Day / DateQIBNIIRIITotal Subscription
1st Day – 
2nd Day – 
3rd Day – 
4th Day – 
5th Day – 
Shares Offered or Net Issue

The shares subscribed by the public will be updated herein on a daily basis, once the IPO is open for subscription.


Shyam Steel Industries IPO Allotment Status

Here, you can find the Allotment Status of this IPO.


Shyam Steel Industries IPO Price Band

The face value of each share is Rs 10, but the price band of the IPO is not yet disclosed. 


Shyam Steel Industries IPO Equity Share Offering

Issue of 37,04,000 Equity Shares of face value of Rs.10/- each for cash at a price of Rs. [ ] per Equity Share (including a share premium of Rs.[ ] per Equity share) aggregating Rs. [ ] lakhs.


Shyam Steel Industries Limited – Company Overview

The Company was originally incorporated as Shyam Shree Steels Limited on March 8, 2002 at Kolkata as a public limited company under the Companies Act, 1956, and was granted the certificate of incorporation by the RoC. Subsequently, the name of the Company was changed to Shyam Steel Industries Limited and a fresh certificate of incorporation consequent on change of name was granted by the RoC on December 18, 2003.

Business strategies of Shyam Steel Industries Limited

  • Focus on expansion of Retail Customer base
  • Continue to expand the Institutional Customer base by being an approved supplier of quality TMT Rebar from more number of government entities
  • Focus on backward integration and organic and selective inorganic expansion
  • Continue to focus on improvising the manufacturing process and capabilities
  • Maintain strong financial performance and low leverage

Shyam Steel Industries Limited – Financial Statements

A quick look into the past financial performance of the company to understand its performance of business and evaluate the growth prospectus:

Financial Summary of Shyam Steel Industries Limited IPO

On the basis of Consolidated statement:-

Amount (in INR Million) 
31-Dec-1831-Mar-1831-Mar-1731-Mar-16
Total Assets13,185.0111,506.7710,162.739,720.81
Total Revenue20,025.5021,475.8915,151.6111,619.74
Total Expense18,366.7720,164.1314,659.7411,518.48
Profit After Tax1,313.491,093.60446.7674.00
EBITDA2,369.872,399.741,702.721,355.33

Earnings per Equity Share (in lakhs)

31-Dec-1831-Mar-1831-Mar-1731-Mar-16
Basic & Diluted21.1917.636.831.09

From the above statements, one could find that the Shyam Steel Industries Limited may perform well.


Shyam Steel Industries Limited IPO – Promoters

The Promoter of this company is:

  •  Purushottam Beriwala
  • Govind Beriwal
  • Lalit Beriwala
  • Ravi Beriwala
  • Brijesh Beriwala
  • Manish Beriwala

List of Related Parties (Key Managerial Personnel)

  • Purushottam Beriwala, Govind Beriwal, Lalit Beriwala, Manish Beriwala, Ravi Beriwala, Deepak Chowdhary: Wholetime Directors
  • Suket Beriwal, Raghav Beriwal, Siddharth Beriwal: VP – Strategy and Operations of the Company
  • Nikunj Beriwal: CFO
  • Prashant Damani: Company Secretary & Compliance Officer
  • Vikash Goel: President – Marketing of the Company
  • Rabindra Kumar Sharma: President – Marketing of the Company
  • Vinay Kumar Singh: President – Plant (Technical) of Shyam Steel Manufacturing Limited
  • Sribesh Beltharia: Vice President – Human Resource

Interest in promotion of the Company

Except for Purushottam Beriwala, Govind Beriwal, Lalit Beriwala, Ravi Beriwala, Brijesh Beriwala and Manish Beriwala who are also the Promoters, none of the Directors are interested in the promotion of the Company.

Property Interest

The Promoters have confirmed that they do not have any interest in any property acquired by the Company within three years preceding the date of this Draft Prospectus or proposed to be acquired by the Company as on the date of this Draft Prospectus. The Promoters do not have any interest in any transactions in the acquisition of land, construction of any building or supply of any machinery.

Interest in Intellectual Rights of the Company

They own intellectual property in the form of copyrights and trademarks. Their products are marketed under the brand name of Shyam which has been adopted and used since 1994, and for which their Company has a trademark registration under the Trademarks Act, 1999. They also own certain other trademarks and copyrights that have been registered under the Trademarks Act, 1999 and Copyright Act, 1957 respectively.


Shyam Steel Industries IPO Offer Details or Issue Details

Particulars No. Of Equity Shares
 Equity Shares Offered Upto [●] Equity Shares of M 10 each for cash at a
price of M [●] per share aggregating M [●] lakhs.
 Of which:
 Reserved for Market Makers Upto [●] Equity Shares of M 10 each for cash at a
price of M [●] per share aggregating M [●] lakhs
 Net Issue to the Public Upto [●] Equity Shares of M 10 each for cash at a
price of M [●] per share aggregating M [●] lakhs
 Of which:
 Retail Investors Portion Upto [●] Equity Shares of M 10 each at a price of M
[●] per Equity Share will be available for allocation for
Investors of up to M 2.00 lakhs
 Non-Retail Investors PortionUpto [●] Equity Shares of M 10 each at a price of M
[●] per Equity Share will be available for allocation for
Investors of up to M 2.00 lakhs
 Equity Shares outstanding prior to the Issue[●] Equity Shares
 Equity Shares outstanding after the IssueUpto [●] Equity Shares

Shyam Steel Industries IPO Issue Object

The Company propose to utilise the Net Proceeds towards funding the following objects:

  • Repayment/prepayment of certain borrowings of the Company and the Subsidiary, SSML; and
  • General corporate purposes.

Shyam Steel Industries IPO – Basis of the Offer Price

The issue price is determined by the company in consultation with the Lead manager on the basis of the following qualitative and quantitative factors.

Qualitative factors are:

  • Premium branded TMT Rebar player with focus on Retail Customers;
  • Successful expansion through focus on backward integration and selective inorganic expansion;
  • Strong and consistent financial performance with low leverage;
  • Strong brand recall with a robust sales process; and
  • Experienced management and operational team and with strong domain expertise.

The relevant quantitative factors are:

On the basis of consolidated statement:-

Basic & Diluted EPSRONW NAV (Rs.)
31-Dec-1821.1918.88%112.22
31-Mar-1817.6319.37%91.00
31-Mar-176.839.70%
31-Mar-161.091.66%
  • Price to Earnings (P/E) ratio in relation to Issue Price of Rs. [ ]:
ParticularsP/E ratio
Highest 36.15
Average17.25
Lowest4.46
  • Competitive Peers:
Sr. No. ParticularsFace Value  (in Rs.) EPS (In Rs.)P/E RatioRONW (%) NAV (In Rs.)
1 Shyam Steel Industries Limited1017.6319.37%91.00
2JSW Steel Limited1025.8511.1422.20%114.43
3Kamdhenu Limited106.7036.1510.91%61.37

Shyam Steel Industries Limited IPO Lead Managers

Book Running Lead Managers
Axis Capital Limited

Edelweiss Financial Services Limited

IIFL Holdings Limited

SBI Capital Markets Limited

Shyam Steel Industries IPO Registrar to offer

Registrar to the Offer
Link Intime India Private Limited
C-101, 1st Floor, 247 Park, Lal Bhadur
Shastri Marg, Vikhroli (West),
Mumbai 400 083
Tel: +91 022 49186200
Email: shyamsteel.ipo.linkintime.co.in
Investor grievance email:

Website: www.linkintime.co.in
Contact person: Shanti Gopalkrishnan
SEBI registration number: INR000004058

Shyam Steel Industries Limited Other Details:

  • Statutory Auditor – B S R & Co. LLP
  • Peer Review Auditor –  NA
  • Bankers to the Company – Escrow Collection Bank, Refund Bank, Public Issue Bank and Sponsor Bank

Shyam Steel Industries IPO Review by Top 10 Stock Brokers

Top Stock Brokers ReviewCompany ReputationCompetitive EdgeFinancial StatementPopularity IndexPromoters Reputation
Angel Broking7.5/107.4/108.5/108.1/107.1/10
Sharekhan7.2/107.1/108.6/108.1/107.2/10
Kotak Securities7.3/107.5/108.4/108.1/107.3/10
ICICI Direct7.3/107.3/108.7/108.1/107.1/10
IIFL7.5/107.2/108.8/108.0/107.1/10
Edelweiss7.5/107.4/108.4/108.3/107.2/10
Zerodha7.4/107.1/108.5/108.1/107.0/10
5Paisa7.1/107.1/108.4/108.1/107.1/10
Karvy7.4/107.3/108.2/108.1/107.1/10
Motilal Oswal7.1/107.1/108.6/108.3/107.2/10

Shyam Steel Industries IPO Grey Market Premium

The Shyam Steel Industries IPO Grey Market Premium price is Rs X, the Kostak rate is Rs X and the Subject to Sauda is X. 


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Shyam Steel Industries Limited IPO News

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