ABOUT SHYAM METALICS AND ENERGY LTD

Incorporated in 2002, Shyam Metalics and Energy Limited (SMEL) is India's leading
integrated metal producer company. The company is primarily engaged in the production of
long steel products such as iron pellets, sponge iron, steel billets, TMT, structural products,
wire rods, and ferro alloys. As of February 2021, it is among India's largest producers of ferro
alloys in terms of installed capacity and the fourth-largest player in the sponge iron industry.

Competitive Strengths

 Leading integrated metal producer in India.

 Strategically located manufacturing plants with a robust infrastructure.
 Diversified product portfolio.
 Strong financial performance and distribution network.

SHYAMMETL IPO BASIC INFO.

IPO DETAILS
Issue Type Fresh issue and offer for sale
IPO Size Rs. 909 cr. (Listing at BSE, NSE)
Price Band Rs. 303 – Rs. 306 per equity share
Face Value Rs. 10 per equity share
IPO Date June 14, 2021 to June 16, 2021
Lot Size 45 shares in 1 lot (in multiples thereof up to 14 lots)
Investor Quotas Employee reservation: up to 30,000 equity shares
QIB: 50% NII: 15% Retail: 35%

Shyam Metalics, which was sold from June 14 to June 16, was subscribed 121 times during
its bidding period. The issue received bids for shares worth Rs 1.10 lakh crore compared with
the issue size of Rs 909 crore, according to exchange data.

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The category reserved for QIBs was subscribed 156 times, non-institutional investors 340
times and the portion set aside for retail investors was subscribed 11.62 times.

Shyam Metalics and Energy got listed on June 24, 2021 made a decent debut on NSE, as the
scrip got listed at Rs 380, a 24.18 per cent premium over its issue price of Rs 306.

On BSE, the scrip got listed at Rs 367, up 19.93 per cent.

Quarterly financials

(INR) Dec-21 Y/Y

Revenue 2.58T Cr 51.67%
Net income 421.49 Cr 94.93%
Diluted EPS 16.54 78.62%
Net profit margin 16.35% 28.54%
Operating income 565.31 Cr 104.96%
Cost of revenue 1.59T Cr 55.30%

Questions

Having applied in the retail investor category and have been allocated 2 lots (i.e. 45 * 2= 90
equity shares) in the IPO,

1. What was the issue price in the IPO?

Rs. 303 – Rs. 306 per equity share (at face value Rs. 10 per equity share)

2. What was the listing gain in the IPO?

Listing on NSE was Rs.380; therefore, listing gain was Rs. 74 i.e. a gain of 24.18%
Listing on BSE was Rs.367; therefore, listing gain was Rs. 61 i.e. a gain of 19.93%

3. What is the value of the shares allocated to me on February 15, 2022 closing price?
Closing price on February 15, 2022 was Rs. 333.65

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Therefore, value of shares allocated = Closing price per equity share * no. of equity shares =
333.65 * 90 = Rs. 30,028.50

4.  How does the IPO compare with Nifty 50 index in the same period?
Shyam Metalics stock and Nifty 50 comparison (from the date of listing, June 24, 2021, till
February 15, 2022)

Interpretation
1. SHYAMMETL stock is showing a decreasing trend whereas NIFTY 50 is showing an
increasing trend.
2. On 22nd July, 2021, SHYAMMETL hit its highest Rs. 445 (+14.40%) when the
NIFTY index was 15,824 points (-0.23%).
3. On 20th December, 2021, SHYAMMETL was the lowest Rs. 308.75 (-20.63%) when
the NIFTY index was 16,614.20 points (+4.75%).

Current updates
 Shyam Metalics and Energy Limited, at its board meeting, February 09, 2021,
recommended an Interim dividend of INR 2.25/- per Equity Share, being 22.5% of the
Face Value of INR 10.00/- each, to the shareholders of the Company.

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  Shyam Metalics and Energy on Monday, 27th December, 2021, announced a 20% increase
in total installed capacity for sponge iron products as outlined in the capex plans for
financial year 2021-22.
 The company said sales have grown from 1.07 lakh tonnes of long steel products in 2016-
17 to 6.37 lakh tonnes in 2020-21 and following the expansion it could go up to 20 lakh
tonnes of branded value added products.

Price performance & peer comparison

Company 1 week% 1 month% 3 month% 6 month%

Shyam Metalics 1.94 -4.8 -7.55 -5.55
Tata Steel -4.11 -2.23 -4.15 -15.87
Jindal Steel -1.43 0.62 6.99 12
JSW Steel -2.52 -6.79 -8.96 -9.17
SAIL -5.06 -8.58 -15.62 -18.62

Recommendations: BUY for long term

REFERENCES
 https://www.shyammetalics.com/
 https://www.google.com/finance/quote/SHYAMMETL:NSE?
sa=X&ved=2ahUKEwiMlKS3pZb2AhXhsFYBHR8FBN8Q3ecFegQICBAU
 https://www.moneycontrol.com/news/business/ipo/shyam-metalics-lists-at-rs-380-a-24-
premium-over-ipo-price-7080781.htmL
 https://simplywall.st/stocks/in/materials/bse-543299/shyam-metalics-and-energy-shares
 https://www.business-standard.com/article/news-cm/shyam-metalics-announces-capacity-
expansion-in-steel-products-121122800176_1.html

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