Shyam Metalics IPO subscribed 1.6 times on Day 2

NEW DELHI: Shyam Metalics' initial public offering (IPO) saw strong demand from investors as the issue was subscribed 1.59 times so far on Tuesday, the second day of the bidding process. The issue was fully subscribed on Monday.By 10:50 am, the IPO had received bids for 3,35,37,555 shares, which was 1.59 times the total issue of 2,10,90,890 shares. The company is selling its shares in the fixed price band of Rs 303-306 under the IPO.The Rs 909-crore IPO comprises an offer for sale of up to Rs 252 crore and fresh issuance of shares worth up to Rs 657 crore. The issue closes on Wednesday.At the upper price band of Rs 306, shares under the Shyam Metalics IPO are available at 9.1 times FY21 EV/Ebitda on an annualised basis.Analysts find the IPO fully priced but believe the rise in metals prices globally and hopes of a recovery in domestic demand could work for the company. They largely have ‘subscribe’ ratings on the issue.The company had raised Rs 269.94 crore from 21 anchor investors on Friday, allocating 88,21,764 shares at Rs 306 apiece.The company has proposed to use the net proceeds from the fresh issue towards repayment or prepayment of up to Rs 470 crore of its debt and that of its subsidiary, Shyam SEL and Power, and for other general corporate purposes.

from Economic Times https://bit.ly/3wrl9at
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