Shyam Metalics lists at over 24% premium to IPO price

Shyam Metalics lists at over 24% premium to IPO price

Shyam Metalics and Energy made a strong listing on the stock exchanges on Thursday amid positive market momentum.
Shares of the debutant company began trading at Rs 380 per share on NSE, up Rs 76 or 24.18% from the issue price of Rs 306 apiece. Shyam Metalics and Energy had a market capitalization of Rs 9.69 crore on the listing.
The Rs 909-crore initial public offering (IPO) of Shyam Metalics and Energy became the highest subscribed IPO of FY21 so far, receiving 121.43 times subscription. Upon listing, Shyam Metalics and Energy has joined its peers such as Tata Steel, JSW Steel, Steel Authority of India, Jindal Steel and Power and Tata Steel Long Products. So far this financial year, investors have seen only two other IPOs hit Dalal Street.

Shyam Metalics and Energy issue was sold in the price band of Rs 303-306 per share. The public issue received bids of over 256.11 crore shares against the total issue size of 2.10 crore shares. The portion reserved for qualified institutional buyers (QIBs) was subscribed 155.71 times, while those of non-institutional investors was subscribed 340 times and that of retail individual investors (RIIs) was subscribed 11.64 times. While, shares for the employees segment saw a subscription of 1.55 times.

The steel maker firm had cut the size of its IPO from Rs 1,107 crore to Rs 909 crore, after promoters offloaded Rs 252 crore shares from their own stake against Rs 450 crore as planned earlier. Shyam Metalics sells intermediate and final products across the steel value chain catering to institutional and end-use customers. It operates three manufacturing plants that are located at Sambalpur in Odisha, and Jamuria and Mangalpur in West Bengal.

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