West Bengal-based Shyam Metalics and Energy has filed a draft red herring prospectus with capital market regulator, SEBI.
Through an initial public offering, the metal-producing company aims to raise around Rs 1,107 crore.
Moreover, the aim is to use IPO’s net proceeds for repayment/prepayment of debt of the Company.
This also includes SSPL, one of its subsidiaries and general corporate activities.
The IPO comprises of fresh issue of Rs 657 crore and an offer for sale of Rs 450 crore from promoters.
Further, the offer consists of a reservation of up to 3 lakh equity shares for eligible employees.
It may opt for Rs 250-crore-pre-IPO placement, subject to consultation with merchant bankers.
Promoters of the company are Mahabir Prasad Agarwal, Brij Bhushan Agarwal, Sanjay Kumar Agarwal, Subham Capital Private Limited among others.
It’s revenue from operations stood at Rs 3,920 crore, Rs 4,684.5 crore and Rs 4,395 crore in fiscals 2018, 2019 and 2020.
The company operates three plants in Sambalpur in Odisha and Jamuria besides Mangalpur in West Bengal.
However, the aggregate installed metal capacity of the plants stood at 5.71 million tonne per annum as on December 2020.
It intends to increase exports by leveraging the close proximity of the manufacturing plants to various ports and export products.
This includes ferro alloys and specialised billets to international markets respectively.
Book running lead managers to this issue are ICICI Securities, JM Financial, Axis Capital, IIFL Securities and SBI Capital Markets.
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