Veteran investor Madhusudan Kela, Europe's Societe Generale and Reliance Commercial Finance are among the many allottees in Shyam Metalics' Rs 1,400-crore QIP. As per the company's filing, the allottees were issued shares at Rs 576, which is a 12 percent discount from the last closing price and a 3.62 percent discount from the floor price of Rs 597.63.
The qualified institutional placement started on January 2 and closed on January 5.
"The board on January 5 approved the issue and allotment of 24,051,165 equity shares of face value of Rs 10 each to 38 qualified institutional buyers at the issue price of Rs 576, aggregating to Rs 1,385 crore," Shyam Metalics said in an exchange filing.
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Reliance Commerical Infra, Winro Commercial, Santosh Industries, Authum Investment, ITPL Invesco India Contra Fund and Societe Generale ODI have been allotted more than 5 percent of the issue size.
Meanwhile, Cohesion MK Best Ideas Sub-Trust has been allotted 5 lakh equity shares. Cohesion MK Best Ideas Sub-Trust is a joint venture between Cohesion Investments and Madhusudan Kela.
Post the QIP, Reliance Commerical Infra holds a 3.22 percent stake in the company, Santosh Industries holds 0.85 percent, Cohesion MK holds 0.36 percent.
Shyam Metalics' growth story
The company is an integrated metal-producing company with a focus on long steel products and ferroalloys. In September 2023, the company announced that it would make aluminium foils for lithium-ion batteries. It also acquired Mittal Corp Limited for Rs 351 crore recently, thus bolstering stainless steel revenues for the company.
Over the past five years, the company's sales have compounded at a rate of 27 percent and profit at 15 percent. Despite rallying over 110 percent in the past one year, the stock has 5 buy calls from analysts, and nil sell or hold calls.
"Going ahead, we expect Shyam Metalics performance to be aided by higher volume owing to demand uptick in infrastructure segment. Besides, aluminium foils and stainless steel (10 percent of overall revenue in November 23) are likely to diversify its earnings profile," said ICICI Securities in a report last month.
At 11:15 am, the stock was quoting at Rs 643.60 on the NSE, down 1.55 percent from previous close.
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