Shyam Metalics Approves ₹1.80 Interim Dividend, Greenlights Fundraise up to ₹7,500 Cr

Kolkata, July 22, 2025 — Shyam Metalics and Energy Ltd (NSE: SHYAMMETL, BSE: 543299) has declared its first interim dividend of ₹1.80 per equity share (18% of face value ₹10) for FY26 and secured board approval to raise funds up to ₹7,500 crore through equity and debt instruments.

The company’s 23rd Annual General Meeting (AGM) is scheduled for August 26, 2025, to be conducted via video conferencing. The register of members will remain closed from August 20 to 26, and August 19 is set as the cut-off date for remote e-voting on resolutions, including fundraising approvals.

Stock Performance

As of July 22, 2025, the stock closed at ₹939.85, up 2.16% from the previous close. It hit an intraday high of ₹942.00 with a volume of 13.25 lakh shares and turnover of ₹123.67 crore. VWAP stood at ₹933.67.

Key Highlights from Board Meeting

The board has declared an interim dividend of ₹1.80 per equity share, with the record date set for Monday, July 28, 2025. The dividend will be paid within 30 days of declaration. This distribution reflects available profits and aims to reward shareholders in the current cycle.

In parallel, the company plans to raise up to ₹4,500 crore via equity-linked instruments, including QIP, FPO, or private placement. It also approved debt fundraising of up to ₹3,000 crore through non-convertible debentures (NCDs). These moves are structured to boost capital availability for upcoming operational and strategic requirements.

Equity and NCD Issuance Details

Equity Issuance (Annexure A):

Shyam Metalics will raise up to ₹4,500 crore via a mix of equity shares and other eligible securities, through qualified institutional placements (QIP), public issues, preferential allotments, or private placements, subject to shareholder and regulatory approvals.

NCD Issuance (Annexure B):

The company will issue redeemable, unsecured, and unlisted non-convertible debentures (NCDs) aggregating up to ₹3,000 crore. Terms and pricing are yet to be finalised and will require shareholder approval.

Financial Performance: Q1FY26 (Consolidated)

Shyam Metalics reported consolidated revenue from operations of ₹4,418.84 crore for Q1 FY26, marking a 22.4% YoY and 6.8% QoQ rise. Total income stood at ₹4,472.45 crore, up 22.1% YoY, driven by higher volumes and pricing in its core steel and allied product segment.

EBITDA rose 17.6% YoY to ₹633.23 crore, supported by better cost absorption and higher realisation.

Net profit increased to ₹290.67 crore, up 32% sequentially and 5.3% annually. Operating efficiency and improved capacity utilisation contributed to the margin improvement over the previous quarter.

Cashflow from operations reached ₹496.69 crore, reflecting a 20.6% YoY and 11% QoQ increase. Basic EPS rose to ₹10.45 from ₹7.92 in Q4. These gains suggest efficient capital deployment across billets, TMT bars, sponge iron, and ferro alloys, the company’s sole operating segment.

Other Key Approvals

• AGM Date & E-Voting: The 23rd AGM will be held on August 26, 2025 via video conferencing. E-voting cut-off date is August 19.

• Closure of Register of Members: August 20–26, 2025.

• Scrutinizer Appointment: M/s MKB & Associates appointed as scrutinizer for e-voting.

• Code Amendment: Insider Trading Code modified in line with SEBI regulations.

Management Commentary

Chairman Brij Bhushan Agarwal stated,

“The strong Q1 performance reflects our continued focus on operational efficiency and disciplined capital allocation. The proposed fundraising initiatives will strengthen our growth roadmap and improve balance sheet resilience.”

Outlook

Strong quarterly results and the board’s green light for a ₹7,500 crore fundraise signal aggressive capital planning. The dividend adds near-term shareholder value, while planned equity and debt issuance point to upcoming capacity expansion or acquisitions. Market focus may shift to execution and capital deployment clarity.

About the Company

Shyam Metalics and Energy Ltd, listed on NSE and BSE, is a leading integrated metal producer focused on long steel products and ferro alloys. Headquartered in Kolkata, the company operates in West Bengal and Odisha with a diversified product portfolio spanning pellets, billets, TMT, wire rods, and sponge iron.

REF:https://www.bseindia.com/xml-data/corpfiling/AttachLive/38eb370b-f625-4216-9504-183205d76fa2.pdf

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