Shares of Shyam Metalics and Energy opened nearly 7 percent lower on September 11, as the company has initiated an offer-for-sale (OFS) with a floor price set at an 11.5 percent discount compared to the closing price on Friday. The OFS, valued at Rs 538 crore, commences today with a floor price of Rs 414, contrasting with Friday's closing price of Rs 467.80.
Shyam Metallics' OFS will be executed over two days, with the offer being open for non-retail investors on September 11, and for the retail investors on September 12.
The company's promoter entities -- Narantak Dealcomm and Subham Buildwell, will sell up to 1.3 crore shares or a 5.11 percent stake in the company through the OFS. The offer is expected to fetch the two promoters a cumulative total of Rs 538.20 crore. The company has a market cap of Rs 11,944 crore, as of Friday's close.
At 09.18 am, shares of Shyam Metalics and Energy were trading 3.59 percent lower at Rs 451 on the National Stock Exchange.
Follow our live blog for all the market action
As of the company's June shareholding data, Narantak Dealcomm held a 19.95 percent stake while Subham Buildwell owned 27.65 percent of Shyam Metallics. The OFS is being undertaken to comply with SEBI’s (Securities and Exchange Board of India's) minimum public shareholding (MPS) norms.
The combined promoter shareholding in Shyam Metalics was at 88.35 percent as of the June data, which needs to be brought down to 75 percent as per the MPS.
Meanwhile, the integrated metal producer also reported its monthly sales data over the weekend. While the company's aluminium foil sales grew by 40.1 percent on year, pellet sales fell 34 percent to 74,427 tonnes.
Brokerage firm ICICI Securities, which has a 'buy' call on the stock with a price target of Rs 690 remains positive on the company's announced capital expenditure (capex) plan of Rs 3,900 crore as it illustrates its sharp focus on both scope and scale expansion.
"In our view, the payback period of this capex is likely to be less than 4 years, even with our estimate of declining commodity prices and EBITDA margin persisting in the range of 12-13 percent. Considering the headroom in balance sheet, we believe the company has enough on the table to pursue further growth opportunities," the firm stated.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
