Chennai: Shyam Metalics and Energy Limited (“SMEL”, including its subsidiaries and associates, the “Group”) is proposing toopen the Bid/Offer period in relation to its initial public offering of Equity Shares (the “Offer”/ “IPO”) on Monday, June 14 2021 and close the Bid/Offer period on Wednesday, June 16, 2021. The price band for the Offer has been decided at Rs. 303– Rs. 306 per Equity Share. The Company and the Selling Shareholdershave, in consultation with the book running lead managers (the “BRLMs”), considered participation by Anchor Investors, which participation shall be one Working Day prior to the Bid/Offer Opening Date, i.e. Friday, June 11, 2021.
The total issue size is upto Rs. 909 crore with a fresh issuance of Equity Shares, aggregating up to Rs. 657 Cr and an offer for sale of Equity Shares aggregating up to Rs. 252 cr, by the Selling Shareholders. The Company proposes to utilise the Net Proceeds from the Fresh Issue towards repayment or prepayment of up to Rs 470 crs of its debt and that of its subsidiary, Shyam SEL and Power Limitedand for other general corporate purposes.
The Group is a producer of intermediate and long steel products, such as, iron pellets, sponge iron, steel billets, TMT, structural products, wire rods, and ferro alloys products with a specific focus on high margin products, such as, customised billets and specialised ferro alloys for special steel applications. The Group is currently in the process of further diversifying its product portfolio by entering into the segments, such as, pig iron, ductile iron pipes and aluminium foil. The Group’s key strength lies in its integrated operations across the steel value chain and strategic locations of its manufacturing plants in Odisha and West Bengal which are well connected by railways, roadways and ports in the eastern region of India and are supported by infrastructure in terms of captive railway sidings and captive power plants.
The Group’s manufacturing plants at Sambalpur and Jamuria are forward and backward integrated, and the Group is present across steel value chain, offers a diversified product mix, and has strategic locational advantage. In the nine months ended December 31, 2020, power units produced from the Group’s captive power plants accounted for 79.58% of their total power units consumed. The Group has a wide distribution network partnered through 42 distributors across 13 states and one union territory in India, as of December 31, 2020. The Group’s domestic customers include Jindal Stainless Limited, Jindal Stainless (Hisar) Limited, and Rimjhim Ispat Limited and international customers include Norecom DMCC, Norecom Limited, POSCO International Corporation, World Metals & Alloys (FZC), Traxys North America LLC, JM Global Resources Limited, Goenka Steels Private Limited and Vijayshri Steel Private Limited.
ICICI Securities Limited, JM Financial Limited, Axis Capital Limited, IIFL Securities Limited and SBI Capital Markets Limited are the BRLMS to the Offer.
The Offer is being made in terms of Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, as amended (“SCRR”), read with Regulation 31 of the SEBI ICDR Regulations. The Offer is being made in accordance with Regulation 6(1) of the SEBI ICDR Regulations, through the Book Building Process wherein not less than 15% of the Offer shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 35% of the Offer shall be available for allocation to Retail Individual Bidders in accordance with the SEBI ICDR Regulations subject to valid Bids being received from them at or above the Offer Price. The portion of the Offer being up to 300,000 Equity Shares, which shall not exceed 5% of the post Offer Equity Share capital of our Company, is available for allocation to Eligible Employees, on a proportionate basis.
Disclaimers
SHYAM METALICS AND ENERGY LIMITED is proposing, subject to receipt of requisite approvals, market conditions and other considerations, to make an initial public issue of its Equity Shares and has filed the red herringprospectus dated June 4, 2021 (“RHP”) with the Registrar of Companies, West Bengal at Kolkataand thereafter with SEBI and the StockExchanges. The RHP shall be available on the website of the SEBI at www.sebi.gov.in as well as on the websites of the book running lead managers, ICICI Securities Limited, Axis Capital Limited, IIFL Securities Limited, JM Financial Limited and SBI Capital Markets Limitedat www.icicisecurities.com, www.axiscapital.co.in, www.iiflcap.com, www.jmfl.com and www.sbicaps.com, respectively. Investors should note that investment in equity shares involves a high degree of risk and for details relating to such risks, see “Risk Factors” on page 21of the RHP.
The Equity Shares have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any other applicable law of the United States and, unless so registered, may not be offered or sold within the United Statesexcept pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act and applicable state securities laws. Accordingly, the Equity Shares are being offered and sold (a) in the United States only to persons reasonablybelieved to be “qualified institutional buyers” (as defined in Rule 144A under the U.S. Securities Act and referred to in the Red Herring Prospectus as “U.S. QIBs”) in transactions exempt from the registration requirements of the U.S. Securities Act and (b) outside the UnitedStates in compliance with Regulation S and the applicable laws of the jurisdiction where those offers and sales are made. There will be no public offering in the United States.
DISCLAIMER CLAUSE OF SEBI: SEBI only gives its observations on the draft offer documents and this does not constitute approval of either the Offer or the specified securities stated in the Offer Document. The investors are advised to refer to pages 340-341 of the RHP for the full text of the Disclaimer Clause of SEBI.
DISCLAIMER CLAUSE OF NSE (The Designated Stock Exchange): It is to be distinctly understood that the aforesaid permission given by NSE should not in any way be deemed or construed that the offer document has been cleared or approved by NSE; nor does it in any manner warrant, certify or endorse the correctness or completeness of any of the contents of this offer document; nor does it warrant that this Issuer’s securities will be listed or will continue to be listed on the Exchange; nor does it take any responsibility for the financial or other soundness of this Issuer, its promoters, its management or any scheme or project of this Issuer. The investors are advised to refer to the Offer Document for the full text of the ‘Disclaimer clause’ of the NSE on page 345-346 of the RHP.
DISCLAIMER CLAUSE OF BSE: It is to be distinctly understood that the permission given by BSE Limited should not in any way be deemed or construed that the RHP has been cleared or approved by BSE nor does it certify the correctness or completeness of any of the contents of the RHP. The investor is advised to refer to the page 345 of the RHP for the full text of the Disclaimer clause of the BSE.
