Shyam Metalics gains on raising Rs 1,385 crore through QIP, Madhusudan Kela among allottees
Summary
Shares of Shyam Metalics and Energy gained on January 10 after the steel maker raised Rs 1,385 crore through a qualified institutional placement (QIP) issue. Veteran investor Madhusudan Kela, Europes Societe Generale and Reliance Commercial Finance were among the allottees in the QIP.The QIP received an overwhelming response, garnering bids totalling Rs 4,055 crore, representing 3.5 times the amount sought, Shyam Metalics said in a regulatory filing. The QIP committee, in a recent meeting, approved the allotment of 2.4 crore equity shares with a face value of Rs 10 each.The Shyam Metalics shares were issued to 38 qualified institutional buyers (QIBs) at an issue price of Rs 576 per share, a 3.62 percent discount from the floor price of Rs 597.63, the Kolkata-based company said in the filing.Follow our market blog to catch all the live actionReliance 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. We would also like to highlight that our company has consistently achieved a CAGR exceeding 15 percent in the past and we anticipate sustaining the same growth trajectory by relying on internal accruals," B Bhushan, vice-chairman and managing director of the integrated metal-producing company, said.For the quarter ended September 2023, Shyam Metalics & Energy reported a more than fourfold jump in its consolidated profit after tax (PAT) to Rs 481.97 crore, despite a 4.7 percent fall in revenue at Rs 2,940.70 crore. Over the past five years, the companys sales have recorded a 27 percent CAGR and profit has compounded at a rate of 15 percent.In the previous session, the shares of Shyam Metalics and Energy Ltd ended 1.3 percent higher at Rs 638 on the National Stock Exchange (NSE).