Shyam Metalics IPO GMP Today, Check Daily Movement


Shyam Metalics is officially opening season two of IPO later next week. The offer comes after lean months of April and May and will be followed by at least three other IPOs (check our IPO calendar for more details). Although the offer size has been reduced, it is still decent at INR909 crore. Another interesting figure to keep an eye on is Shyam Metalics IPO GMP which has started on a strong note.

Shyam Metalics IPO details

Subscription Dates14 – 16 June 2021
Price BandINR303 – 306 per share
Fresh issueINR657 crore
Offer For SaleINR252 crore
Total IPO sizeINR909 crore
Minimum bid (lot size)45 shares
Face Value INR10 per share
Retail Allocation35%
Listing OnNSE, BSE

The offer price of INR303 – 306 per share means that the company is valued at a P/E ratio of 20.8 – 21 based on FY2020 earnings. Although the company has reported only nine months figures in FY2021, it is a safe assumption that P/E ratio for full year will be somewhat closer to these numbers. Shyam Metalics has been profitable in each of the last four years and considering its strong fundamentals, this is attractive valuation.

Read Also: Shyam Metalics IPO explained in 10 points

Shyam Metalics IPO GMP (Grey Market Premium) rates

DateGMP (in INR)Kostak (in INR)Subject to Sauda (in INR)
23 June 2021130
22 June 2021135
21 June 20211305004,800
18 June 20211355005,000
17 June 20211505005,000
16 June 20211404504,500
15 June 20211504504,500
14 June 20211404104,500
12 June 20211504305,000
11 June 20211604505,000
10 June 20211404005,000
9 June 2021130350
8 June 2021140400

Meanwhile, its Return on Net Worth (RONW) stood at 12% which is better than industry leaders such as JSW Steel and Tata Steel. Shyam Metalics also boasts of double digit net profit margins. Such high margins in a commodity product are often indicative of highly refined and optimized back-end operations.

Considering these positives, it is no wonder that the grey premium activity started at nearly 45% of offer price. The rates have further strengthened in the recent days amid buoyancy in broader markets.

Shyam Metalics’ financial performance (in INR crore)

 FY2018FY2019FY20209M FY2021
Comprehensive income521.9641.8340.8460.2
Margin (%)13.313.77.811.5


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