Shares of Shyam Metalics and Energy climbed 8 per cent in Wednesday's trade after the company entered stainless steel business with its acquisition of Mittal Corp. A company press release suggested that the inorganic growth will lead to establishment of the company's manufacturing footprints in Madhya Pradesh and add capacities of 1,50,000 tonne per annum (tpa) stainless steel/ wire rod & bar mill.
Ferro alloys a key input material for stainless steel is extensively produced by Shyam Metalics' existing companies. The government has mandated a minimum 20 per cent use of stainless steel in coastal areas, which ensures stable demand for these products, Shyam Metalics said.
Following the development, the scrip climbed 8.83 per cent to hit a high of Rs 317.05 on BSE.
The company has proposed to further invest Rs 7,500 crore over the next five years.
In 2021, Shyam Metalics acquired a company in the aluminum foil metal space and implemented aluminium foil rolling plant in West Bengal. The acquisition of Sri Venkateshwara, a small aluminium foil plant in Giridh with an annual capacity of 3,600 mtpa hugely benefited the setting up of the aluminium foil rolling mill complex, it said.
Shyam Metalics also took control of Ramsarup Industries through NCLT. Following the takeover of Ramsarup Industries in May this year, Shyam Metalics is aiming at enhancing and reviving its operations and steel-making manufacturing facilities.
Bhushan Agarwal VCMD at Shyam Metalics and Energy said “With a focus on achieving operational excellence, adopting capital prudence across the board, and leveraging our expertise and capabilities, Shyam Metalics has demonstrated stable growth path in past four decades. We remain PAT positive since the commencement of our operations in 2005. The current investments across multiple portfolios will only take the company to the next level of diversification and business excellence, further strengthening its domestic and global position in the market.”
Also Read: Zerodha, Groww, HDFC Securities, others to be impacted! Sebi to enhance monitoring of broking houses