Shyam Metalics IPO subscribed 3.65% on day 2 of bidding
Shyam Metalics and Energy, an integrated metal producing company with a focus on long products and ferro alloys, intends to raise Rs 909 crore through public issue which will close on June 16.
June 15, 2021 / 05:40 PM IST
The public issue of Shyam Metalics and Energy has subscribed 3.65 times on June 15, the second day of bidding, amid strong interest from retail investors.
The offer has received bids for 7.69 crore equity shares against the IPO size of 2.1 crore equity shares, the subscription data available on exchanges showed.
The portion set aside for retail investors witnessed a subscription of 5.8 times and that of employees 78 percent. The reserved portion of qualified institutional buyers was subscribed 81 percent and non-institutional investors 2.6 times.
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Shyam Metalics and Energy intends to raise Rs 909 crore through the public issue which will close on June 16.
The price band for the offer has been fixed at Rs 303-306 per equity share. "We value the stock at Rs 436.4 (FY23 EV/EBITDA 6X) on the post issue equity and initiate coverage with a subscribe. Our price target represents an upside potential of 42.6 percent over 18-24 months from the IPO price," said Ventura Securities.
Also read - Shyam Metalics IPO opens for subscription today; analysts say subscribe
It is the largest producers of ferro alloys (in terms of installed capacity in India) and operates three manufacturing plants - two of which are in West Bengal catering to Northern and Eastern regions of India, and one in Odisha catering to the Southern and Western regions.
The current total installed capacity is 5.71 MTPA and includes captive power plants of 227 MW (serving 80 percent of their power requirement).To Know All IPO Related News, Click Here