Shyam Steel files for IPO

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Axis Capital Limited, Edelweiss Financial Services Limited, SBI Capital Markets Limited and IIFL Holdings Limited are the Book Running Lead Managers to the issue and Link Intime is the registrar to the issue.

Kolkata headquartered Shyam Steel Industries Limited, one of the leading premium branded thermo mechanically treated rebar (“TMT Rebar”) players in India having integrated steel plants and a strong brand identity and recall amongst end customers has filed IPO papers with market regulator SEBI for Initial Public Offering.

Initial Public Offering of Shyam Steel consists of a Fresh Issue of Up to Rs 200 crore and an Offer for Sale of up to 6,670,000 equity shares, comprising up to 1,160,300 equity shares by the promoter selling shareholders and up to 5,509,700 equity shares other selling shareholders.

The Company proposes to utilize the net proceeds from the IPO towards funding the following objects: (1) Repayment/prepayment of certain borrowings of the Company and its Subsidiary, SSML; and (2) General corporate purposes.Shyam Steel Industries Limited is one of the leading premium branded thermo mechanically treated rebar (“TMT Rebar”) players in India having integrated steel plants and a strong brand identity and recall amongst end customers (source: CRISIL Report). Shyam Steel is primarily involved in production of TMT Rebar with backward integration in sponge and billet and sale of premium TMT bars (long steel products) in India (source: CRISIL Report). Company has derived 75.97%, 71.82%, 72.17% and 79.25% of Its revenue from sale of products for TMT Rebar and allied products in the nine months period ended December 31, 2018, Fiscal 2018, Fiscal 2017 and Fiscal 2016. As on March 31, 2019.

Company operates all its Steel Manufacturing Plants in West Bengal. In addition to production of quality TMT Rebar, as part of its integrated operations and ensuring presence across company’s entire steel value chain. The aggregate installed iron and steel production capacity of company’s Steel Manufacturing Plants was 1,584,656 MTPA, including an installed TMT Rebar production capacity of 641,960 MTPA. Owing to its extensive and strong dealer distribution network and strong brand identity, company has developed a strong retail segment through which it has derived 57.72%, 55.91%, 47.33% and 50.21% of its revenue from sale of TMT Rebar and allied products in the nine months period ended December 31, 2018, Fiscal 2018, Fiscal 2017 and Fiscal 2016, respectively