Shyam Metalics and Energy zooms on completing acquisition of Mittal Corp

Shyam Metalics and Energy is currently trading at Rs. 313.75, up by 22.45 points or 7.71% from its previous closing of Rs. 291.30 on the BSE.

Shyam Metalics
Shyam Metalics

The scrip opened at Rs. 307.95 and has touched a high and low of Rs. 318.55 and Rs. 304.00 respectively. So far 62750 shares were traded on the counter.

The BSE group ‘A’ stock of face value Rs. 10 has touched a 52 week high of Rs. 385.40 on 24-Mar-2022 and a 52 week low of Rs. 273.00 on 20-Jun-2022.

Last one week high and low of the scrip stood at Rs. 318.55 and Rs. 289.00 respectively. The current market cap of the company is Rs. 8009.53 crore.

The promoters holding in the company stood at 88.35%, while Institutions and Non-Institutions held 3.83% and 7.82% respectively.

Shyam Metalics and Energy (SMEL) has completed the acquisition of Mittal Corp with a foray into the Stainless Steel (SS) / Wire Rod & Bar Mill business.

The matter is subjudice and shall be resolved in due course. This inorganic growth will witness the establishment of manufacturing footprints in the state of Madhya Pradesh and add capacities of 1,50,000 tpa Stainless Steel / Wire Rod & Bar Mill.

Ferro Alloys a key input material for Stainless Steel is extensively produced by Shyam Metalics’ existing companies. The Government has mandated a minimum 20% use of stainless steel in Coastal Areas which ensures a very stable demand for these products.

With this development, Shyam Metalics has embarked on a ‘diversification approach’ in the metal space to chart the company’s growth journey and has proposed to further invest Rs 7500 crores over the next five years.

In order to meet the growth plans with organic and inorganic expansion, SMEL’s present Capex aims at growing to Rs 10000 crore in the next five years.

The current manufacturing plants in West Bengal and Odisha which employs more than 15000 people will further see an addition of 10000 jobs to the entire workforce post expansions.

In 2021, SMEL made a very successful acquisition in the aluminum foil metal space and then successfully implemented one of India’s largest Aluminium Foil Rolling Plant in India in the State of West Bengal.

The acquisition of Sri Venkateshwara, a small Aluminium Foil plant in Giridh with an annual capacity of 3600 MTPA has hugely benefited the setting up of the Aluminium Foil Rolling mill complex to manufacture Quality Products with an annual rolling capacity of 40000 MT per annum.

SMEL has also taken control of Ramsarup Industries through NCLT which will help facilitate inorganic growth in the steel space.

Following the takeover of Ramsarup Industries in May 2022, Shyam Metalics aims at enhancing and reviving the operations and steel-making manufacturing facilities of Ramsarup. Fresh planning for revival aided with the deployment of capital will lead to the generation of 3000 new jobs and facilitate the growth of the company the state and its people.

Shyam Metalics and Energy is a leading integrated metal producing company based in India with a focus on long steel products and ferro alloys.

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