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Shyam Metalics and Energy Limited raises Rs. 1,385 crores through QIP
Shyam Metalics
Image: Supriyo Hazra/IBNS

Shyam Metalics and Energy Limited raises Rs. 1,385 crores through QIP

| @indiablooms | 10 Jan 2024, 03:07 pm

Shyam Metalics and Energy Limited (SMEL), a prominent integrated metal-producing company based in Kolkata, is pleased to announce the successful completion of its fundraise of Rs. 1,385 crores through a Qualified Institutional Placement (QIP) against the total bid amount of Rs. 4055 Crs- representing 3.5 times the issuance. 

The QIP Committee at its meeting approved the issue allotment of 24,051,165 equity shares of face value of ₹ 10 each to 38 Qualified Institutional Buyers (QIBs) at an issue price of ₹ 576 per equity share (including a premium of ₹ 566 per Equity Share). 

The allotment of equity shares under the Issue sees several renowned institutional investors garnering a significant portion of the Issue. 

Speaking on successful completion of QIP, B. Bhushan, Vice Chairman and Managing Director said, "We are delighted with the successful completion of the QIP, which reflects the trust and confidence that investors have in our company. This completes our dilution as per minimum public holding requirements prescribed by SEBI. We would also like to highlight that our company has consistently achieved a CAGR exceeding 15% in the past and we anticipate sustaining the same growth trajectory by relying on internal accruals. Additionally, we do not have any plans for additional dilution over the next few years and we shall continue on this path, and this would probably be the last dilution from the promoter group.  The funds raised will bring down the working capital loans availed by the company from banks, and we are poised to remain one of the net debt-free companies within the metals sector. This will empower us to pursue new opportunities and accelerate our growth trajectory in the future. Shyam Metalics remains committed to delivering long-term value to its shareholders, customers, and partners. The successful QIP marks a significant milestone in the company’s journey and is well-positioned for a future of sustained growth and innovation”. 

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