Shyam Steel Industries files IPO papers, eyes to raise Rs 500 crore

Shyam Steel Industries has filed draft papers with markets regulator Sebi for its initial public offering.

The IPO consists of fresh issue of up to Rs 200 crore and an offer for sale of up to 66.70 lakh shares, comprising up to 11.60 lakh shares by the promoter selling shareholders and up to 55.09 lakh shares by other selling shareholders, according to the Draft Red Herring Prospectus (DRHP).

Market sources said the IPO size is estimated to be around Rs 500 crore.

The Kolkata-based firm proposes to utilise the net proceeds from the IPO towards repayment/prepayment of certain borrowings of the company and its subsidiary Shyam Steel Manufacturing and for other general corporate purposes.

Axis Capital, Edelweiss Financial Services, SBI Capital Markets and IIFL Holdings are the book running lead managers to the issue and Link Intime is the registrar.

Shyam Steel Industries is a thermo mechanically treated rebar (TMT Rebar) player having integrated steel plants. The company operates all its steel manufacturing plants in West Bengal.

The equity shares of the company are proposed to be listed on BSE and NSE.