Shyam Metalics mulls investment of Rs990cr for capacity expansion at Sambalpur and Jamuria plants; stock spurts ~4%

16 Mar 2022 , 11:01 AM

Shyam Metalics has approved the setting up of further capacities at its integrated units in Sambalpur and its material subsidiary’s plant at Jamuria to capitalize business synergies and add facilities for continued cost leadership.

Company’s pellet plant has an existing capacity of 1.80 MTPA, and it intends to expand it further by 1.20 MTPA at both plants. The company estimates a capital expenditure of Rs180 crore for each plant in the said expansion. The expansion will be fully completed by September 2023.

It also plans expansion of its existing 1st and 2nd Line of Wagon Tripler and Railway Siding to 3rd and 4th Line at Sambalpur and Jamuria plants, with an anticipated expense of Rs90 crore for each plant. The line expansion is estimated to be completed by March 2023.

Shyam SEL & Power also plans the development of a coke oven plant with a capacity of 0.45 MTPA. This plant will require an expenditure of Rs450 crore and is expected to be completed by September 2023.

Total expenditure required by the company is Rs990 crore (including expenditure of Rs720 crore for it’s subsidiary Shyam SEL & Power).

Shyam Metalics was trading at Rs321.40, up by 4.20% against its previous closing price of Rs308.45. It touched day’s high and low of Rs324 and Rs315.95 respectively.