New Delhi, May 17 (PTI) Integrated metal producing firm Shyam Metalics and Energy Ltd has received capital markets regulator Sebi's approval to raise Rs 1,107 crore through an initial public offering.

The IPO comprises fresh issuance of equity shares worth up to Rs 657 crore and an offer for sale to the tune of Rs 450 crore by existing shareholders, according to the draft red herring prospectus.

Those participating in the OFS are Subham Capital, Subham Buildwell, Kalpataru Housefin & Trading, Dorite Tracon, Narantak Dealcomm and Toplight Mercantiles.

Shyam Metalics and Energy, which filed preliminary IPO papers with the capital markets regulator in February, obtained its observation on May 11, an update with the Securities and Exchange Board of India (Sebi) showed on Monday.

Sebi's observation is necessary for any company to launch public issues like initial public offer (IPO), follow on public offer (FPO) and rights issue.

Going by the draft papers, the company intends to utilise the net proceeds from the fresh issue for repayment or prepayment of Rs 470 crore of its debt and that of its subsidiary, Shyam SEL and Power Ltd; and for other general corporate purposes.

The Kolkata-based long steel products and ferroalloy focused company sells intermediate and final products across the steel value chain catering to institutional and end-use customers through 42 distributors, brokers across 13 states and one union territory.

It, currently, operates three manufacturing plants that are located at Sambalpur in Odisha, and Jamuria and Mangalpur in West Bengal.

The company had tried to tap the capital markets in the past too. It had filed draft papers for IPO with Sebi in 2018 and had even received clearance from the regulator too. However, the company deferred its plans to list on the bourses.

ICICI Securities, JM Financial, Axis Capital, IIFL Securities and SBI Capital Markets Ltd are the book running lead managers to the issue.

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