Shyam Metalics gets nod for 900-cr initial public offer

Shyam Metalics and Energy, a leading integrated metal producing company, has received Sebi's go-ahead to raise Rs 909 crore through an initial public offer (IPO). The company, which had filed IPO papers with the capital markets watchdog in August, obtained its "observations" on December 7, as per the latest update with the Securities and Exchange Board of India (Sebi). 

The regulator's observations are necessary for any company to launch public issues like IPO and rights issue. According to the draft papers, "the company's IPO comprises fresh issue of shares worth up to Rs 909 crore".

It plans to utilise the proceeds for payment of debt, including that of its subsidiary SSPL and for other general corporate purposes. ICICI Securities, Edelweiss Financial Services, IIFL Holdings and JM Financial are the merchant bankers to the issue. Kolkata-based Shyam Metalics is one of the largest manufacturers of long steel products and ferro alloys in the country. 

It operates three manufacturing plants, one in Odisha and two in West Bengal, with an aggregate installed metal capacity of 2.90 metric tonne per annum.