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Shyam Metalics continues to trade strong, jumps as much as 30% on day 1 of listing –

Shyam Metalics and Energy, a leading metal producing company, continued to witness strong buying interest. It surged more than 30 percent to hit an intraday high of Rs 399 on June 24.

At 12:09 hours IST, the stock was quoting at Rs 382.40, up 24.97 percent on the BSE, while on the NSE, it was up 25.1 percent at Rs 382.70.

In terms of volumes, Shyam witnessed trading volume of 15.75 lakh equity shares on the BSE, and 2.08 crore shares on the NSE.

Update at 10:13 AM – Shyam Metalics lists at Rs 380, a 24% premium over IPO price

Shyam Metalics and Energy share listed at a 24 percent premium, which was lower than what analysts expected, on June 24.

The stock opened at Rs 380 on the National Stock Exchange against an issue price of Rs 306, while the listing price on the BSE was Rs 367, a 20 percent premium.

The listing was lower than analysts’ expectations and was also lower than the grey market premium, which could be due to the volatility in the secondary market. Analysts had expected it to list with around 40 percent premium.

Shyam Metalics was trading at Rs 380.50, up 24.35 percent on the BSE, and was up 23.7 percent at Rs 378.45 on the National Stock Exchange, at 1013 hours. In terms of volumes, it was trading with 9.66 lakh equity shares on the BSE, and 1.18 crore on the NSE.

The public issue of Shyam Metalics was subscribed 121.43 times on the back of strong response from investors. The company raised Rs 909 crore through its public issue during June 14-16.

Shyam Metalics and Energy is a leading integrated metal producing company based in India with a focus on long steel products and ferro alloys, having three manufacturing plants in Sambalpur in Odisha along with Jamuria and Mangalpur in West Bengal.

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The company is among the largest producers of ferro alloys in terms of installed capacity in India, as of February 2021. As of March 31, 2020, SMEL was also one of the leading players in terms of pellet capacity and the fourth -largest player in the sponge iron industry in terms of sponge iron capacity in India.

The company is in the process of expanding the capacity of its existing manufacturing units and captive power plants, which is expected to increase aggregate installed metal capacity (comprising intermediate and final products) from 5.71 MTPA, as of December 2020, to 11.60 MTPA and captive power plants aggregate installed capacity from 227 MW, as of December 2020, to 357 MW. These proposed expansions are expected to become operational between FY22 and FY25.