Shyam Metalics and Energy share sale via initial public offering (IPO) was oversubscribed on the second day of the issue data from the National Stock Exchange showed. Shyam Metalics and Energy witnessed heavy demand for shares in the ongoing IPO as the issue was subscribed over two times till 1:55 pm, data from NSE showed. Shyam Metalics and Energy received over 4.77 crore bids for 2.10 crore shares on the offer. A total of 3.25 crore bids were received at the cut-off price.
Retail individual investors were seen participating in the share sale in higher numbers as the portion reserved for them was subscribed two times. Portion reserved for non-institutional buyers was subscribed 44 per cent and portion reserved for qualified institutional buyers was not subscribed till 2:15 pm, according to data on NSE.
The Kolkata-based steel maker, Shyam Metalics and Energy, is selling shares in the price band of Rs 303-306 in the ongoing IPO which will close on June 16. The company plans to raise Rs 909 crore via IPO which consists of a fresh issue of shares amounting to Rs 657 crore and an offer-for-sale by existing shareholders, worth RS 450 crore.
The shareholders who would be offloading their stake include Subham Capital, Subham Buildwell, Kalpataru Housefin & Trading, Dorite Tracon and Narantak Dealcomm.
Shyam Metalics will utilise the IPO funds to repay or prepay debt and for general corporate purposes.
Shyam Metalics is a long steel products and ferro alloy company based in Kolkata, with manufacturing plants at Sambalpur in Odisha, and Jamuria and Mangalpur in West Bengal.