Shyam Metalics shares list at over 24% premium to IPO price; stock makes strong market debut

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Updated: June 24, 2021 10:05 AM

Shyam Metalics and Energy made a strong listing on the stock exchanges on Thursday amid positive market momentum.

Shyam Metalics and Energy, Shyam Metalics shares listingThe Rs 909-crore initial public offering (IPO) of Shyam Metalics and Energy became the highest subscribed IPO of FY21 so far. Image: Reuters

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. While, on BSE, Shyam Metalics shares listed at Rs 367 apiece, rising Rs 61 or 20 per cent over the IPO price. In the traded volume terms, 2.93 lakh shares traded on BSE, while a total of 20.94 lakh scrips exchanged hands on NSE, so far. 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 Ltd has joined its peers such as Tata Steel Ltd, JSW Steel Ltd, Steel Authority of India Ltd, Jindal Steel and Power Ltd and Tata Steel Long Products Ltd. So far this financial year, investors have seen only two other IPOs hit Dalal Street.

Shyam Metalics and Energy Ltd 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.

Research and brokerage firms such as Geojit Financial Services, Reliance Securities, Angel Broking, and Ventura Securities had given a ‘subscribe’ rating to the issue. 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.

Shyam Metalics and Energy, which filed preliminary IPO papers with the capital markets regulator Securities and Exchange Board of India (Sebi) in February, received its go-ahead on May 11 this year. The company had tried for stock market listing in the past too. It had filed a draft red herring prospectus (DRHP) for initial public offering with the capital markets regulator SEBI in 2018 and had even received clearance. However, the steel maker deferred its plans to list on the bourses.

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