Shyam Metalics and Energy Limited (SMEL) is a leading integrated metal and ferroalloys company based in India, with its roots tracing back to 1991. The company’s corporate headquarters is located in Kolkata, West Bengal. Over the years, SMEL has established itself as a prominent player in the industry, with a strong focus on long steel products and ferroalloys production. Let’s delve into the company’s history, products, manufacturing plants, partnerships, certifications, and its recent IPO.

History

In 1991, SMEL embarked on its journey under the name Shyam SEL and Power Ltd. Later, in 2002, it was incorporated as Shyam Metalics and Energy Limited. The company initiated commercial production of sponge iron with a capacity of 60,000 TPA at the Mangalpur Manufacturing Plant. SMEL has consistently maintained profitability since it began operations in FY 2005, consistently posting positive EBITDA figures each fiscal year.

In 2013, SMEL expanded its operations with the establishment of two commercial plants. The Sambalpur manufacturing plant was built for the commercial production of iron pellets with a capacity of 300,000 TPA, and the Jamuria manufacturing plant was established for iron pellets production with a capacity of 480,000 TPA. Additionally, the sponge iron plant’s capacity was increased by 36,000 TPA. As of March 31, 2020, SMEL stands as one of the leading companies in terms of pellet capacity and ranks as the fourth-largest player in the sponge iron sector.

IPO Launch

In June 2021, SMEL made headlines by raising funds through its Initial Public Offering (IPO), generating approximately ₹909 Crore. Of this amount, ₹657 Crore came from the public offering, while ₹252 Crore was raised through an offer for sale (OFS). The IPO, consisting of equity shares with a face value of ₹10, was listed on both the BSE and NSE platforms on June 24, 2021. Notably, the Shyam Metalics stock opened with a 24% premium at ₹380 on the BSE and a 20% premium at ₹367 on the NSE platform, showcasing strong investor interest.

Products and Manufacturing Plants

SMEL operates three manufacturing plants, one in Odisha and two in West Bengal, with a combined installed manufacturing plant capacity of 5.71 MTPA as of December 31, 2020. These plants encompass a power plant with an installed capacity of 227 MW.

The two steel manufacturing plants in Jamuria, West Bengal, and Sambalpur, Odisha, cover a wide range of products, including captive railway sliding, iron pellets, billets, power generation, TMT bars, wire rods, sponge iron, structural mills, and ferroalloys. Meanwhile, the Mangalpur Manufacturing Plant in West Bengal is equipped with facilities for sponge iron production, ferrous alloy manufacturing, and power generation. These strategically located plants cater to customers across different regions of India.

Partners and Customers

SMEL serves a diverse customer base, including institutional clients and end-users. Some of its notable domestic clients include Jindal Stainless Limited and Rimjhim Ispat Limited. Internationally, SMEL caters to clients like Boredom DMCC, JM Global Resources, World Metal & Alloys, Traxys North America LLC, and Vijayshri Steel Pvt. Ltd. The company has formed partnerships with 42 distributors, enabling it to distribute its products across 13 states and one union territory. This robust distribution network has contributed to SMEL’s sustained financial performance over more than two decades.

Certifications

SMEL places a strong emphasis on quality and safety. The company holds the ISO 9001:2015 certification for its Quality Management System and ISO 45001:2018 certification from BSCIC for Occupational Health & Safety Management. These certifications reflect SMEL’s commitment to maintaining high standards in its operations.

In conclusion, Shyam Metalics and Energy Limited stands as a testament to India’s thriving metal and ferroalloys industry. With a rich history of consistent profitability, a diverse product portfolio, strong partnerships, and a commitment to quality and safety, SMEL is well-positioned for future growth and success in the dynamic Indian market. Its recent IPO marked a significant milestone in the company’s journey, showcasing the confidence of investors in its potential.