Shyam Metalics shares rally after completion of Mittal Corp Limiteds acquisition: Check target
Shyam Metalics share price: Shares of Shyam Metalics traded at Rs 308.10 per share, which was 5.68 per cent on the upside, on NSE. On BSE, the counter quoted Rs 308 apiece as of 1:33PM.
Shyam Metalics share price: Indian integrated metal producing company Shyam Metalics shares jumped over 5 per cent after the metal producer announced that it has completed the acquisition of Indore-based Mittal Corp Limited.
Through the acquisition, Shyam Metalics aims at expanding existing 8.85 Million Tones Per Annum (MTPA) production capacity to 14.45 MTPA.
Shares of Shyam Metalics traded at Rs 308.10 per share, which was 5.68 per cent on the upside, on NSE. On BSE, the counter quoted Rs 308 apiece as of 1:33PM.
Zee Business panelist, Sumeet Bagadia said that Shyam Metalics stock is under pressure and is seeing selling pressure on the upper levels.
He further said that the scrip is consolidating on a lower level and has a lower-level support of Rs 270-280.
According to him there will be a hurdle on Rs 300, and after breaking that a move of Rs 320-325 is possible.
The counter is trading sideways as of now. Investors can hold the existing positions with a target 300 after that Rs 315.
Shyam Metalics to invest Rs 7,500 crore over the next 4-5 years.
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The company will invest about Rs 7,500 crore over the next 4-5 years to scale up its metal business, Shyam Metalics vice-chairman and managing director Brij Bhusan Agarwal told PTI.
"Mittal Corp's acquisition cost is about Rs 450 crore, and we outbid Jindal Stainless, the competitor for the sick asset put under the NCLT resolution process. The acquisition will enable us to foray into stainless steel and special products, such as defence materials," he said.
The saleable steel capacity of the company will go up to 3.6 million tonnes from 2.1 million tonnes by 2025, a senior company official said.
"In the last two years, we have invested Rs 2,400 crore in the company. We had announced a capex roadmap of Rs 3,950 crore but now we have revised the investment horizon for the next 4-5 years to a total of Rs 10,000 crore to meet organic and inorganic growth plans," he added.
The total revenue will touch Rs 25,000 crore by 2025, from about Rs 10,300 crore in FY'22 fueled by expansion and new businesses, he summed up.
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