Shyam Metalics & Energy shares gains 6% on capacity expansion plan

Shyam Metalics and Energy share price gained 6 percent intraday on March 16, a day after the company announced a capacity expansion plan.

"We announced new capital expenditure plans aggregating Rs 990 crore," the metal producing company said in a BSE filing.

The company proposes to expand its capacity by 2.85 million tonnes per annum as it enters the financial year 2022-23, an increase of 25 percent over the 11.6 MTPA aggregate (including intermediates and pellet) capacity post expansions mentioned in the IPO.

The increased aggregate capacity will now be 14.5 MTPA. "This capital expenditure will be over and above the ongoing capital expenditure expansion of around Rs 3,000 crore," said the company that focusses on long steel products and ferro alloys.

At the time of IPO launch, the company had laid out expansion plans with a budgeted capex of around Rs 3,000 crore through internal accrual, spread across four years.

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As of nine months ended December 2021, Shyam Metalics said it had utilised Rs 1,363 crore and made significant progress in enhancing its capacities.

The company had also commissioned an aluminium-foil-making plant with an annual capacity of 40,000 tonnes.

At 2.34 pm, the Shyam Metalics & Energy share price was quoting at Rs 324.40, up 5.21 percent, amid high volumes on the BSE.

The trading volume of 3,56,160 equity shares was higher by 960 percent compared to the five-day average of 33,596 shares.