Shyam Metalics & Energy Limited Public Offering Of Equity Shares Opening From June 14-16, 2021

* Price Band of Rs. 303 – Rs. 306 per equity share of face value of Rs. 10 each (“Equity Share”)

* Bid/Offer Opening Date – Monday, June 14, 2021 and Bid/Offer Closing Date – Wednesday, June 16, 2021

* Minimum Bid Lot is 45 Equity Shares and in multiples of 45 Equity Shares thereafter

* The Floor Price is 30.3 times the face value of the Equity Shares and the Cap Price is 30.6 times the face value of the Equity Shares.

Shyam Metalics and Energy Limited (“SMEL”, including its subsidiaries and associates, the “Group”) is proposing to open 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 Shareholders have, 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 Limited and 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.