Shyam Metalics and Energy Ltd approves capex of Rs. 2700 crores

Shyam Metalics and Energy Ltd has announced a major strategic expansion involving a fresh capital expenditure (Capex) of ₹2,700 crore.

The expansion focuses on two primary locations-Kharagpur and Sambalpur-aimed at diversifying the product portfolio and increasing total output by early 2029.

Breakdown of Approved Projects

1. Long & Specialty Steel Expansion (Kharagpur)

The company is investing in high-value specialty products to move up the steel value chain.

Project: Wire Rod and Bar Mill (SBQ Mill) equipped with a furnace.

Capacity: 8,00,000 Tonnes Per Annum (TPA).

Investment: ₹900 Crore.

Timeline: Expected commissioning by March 31, 2029.

2. Stainless Steel & Downstream Expansion (Sambalpur)

A significant portion of the Capex is dedicated to expanding the stainless steel (SS) segment and adding sophisticated finishing facilities.

Capacity Increase: Expanding from 0.50 MTPA to 0.60 MTPA.

Key Facilities:

- SS Cold Rolling Mill and SS Precision Cold Rolling Mill.
- SS Hot Rolling Annealing & Pickling Line.
- SS Bright Annealing Line.

Investment: ₹1,800 Crore.

Timeline: Expected commissioning by March 31, 2029.

Strategic Objectives & Funding

Total Investment: ₹2,700 Crore.

Funding Strategy: The projects will be financed through a mix of internal accruals (company profits) and borrowings, as determined by management.

Shares of Shyam Metalics and Energy Limited was last trading in BSE at Rs. 871.60 as compared to the previous close of Rs. 903.70. The total number of shares traded during the day was 134816 in over 6462 trades.

The stock hit an intraday high of Rs. 934.65 and intraday low of 865.65. The net turnover during the day was Rs. 122085753.00.

Source : Equity Bulls

Keywords

ShyamMetalicsandEnergy Expansion Capex