A day after the company announced the capacity expansion plan, today i.e. on March 16, the share price of Shyam Metallics and Energy saw a rise of 6 percent. “We have announced new capital expenditure plans totaling Rs 990 crore,” the metal maker said in a BSE filing.
The company proposes to increase its capacity to 2.85 million tonnes per annum as it enters the financial year 2022-23. These additions will be an additional capacity addition of 25 per cent over and above the total capacity of 11.6 MTPA (including intermediate and pellets) mentioned in the IPO.
The increased total capacity will now be 14.5 MTPA. The company, which focuses on long steel products and ferro alloys, said, “This capital expenditure will be higher than the issued capital expenditure expenditure of about Rs 3,000 crore.”
At the time of IPO launch, the company had in-house made expansion plans for the next four years with an estimated capex of around Rs 3,000 crore.
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Shyam Metaliks said it has utilized Rs 1,363 crore for the nine months ended December 2021 and enhanced its capabilities, making significant progress.
The company also commissioned an aluminum-foil-making plant with an annual capacity of 40,000 tonnes.
Today at 2.34 pm, the share price was trading 5.21 percent higher at Rs 324.40 with high volume on BSE. Trading volume was up by 960 per cent with 3,56,160 equity shares trading today as against the 5-day average volume of 33,596 shares.
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