SSPL purchased 10,000 equity shares in SMEL Steel Structural, which were previously held by Sheetij Agarwal and Shubham Agarwal (5000 shares each). Sheetij Agarwal is a promoter director of both Shyam Metalics and Energy and SMEL Steel Structural, while Shubham Agarwal is a relative of the company’s promoters. These transactions were conducted at arm’s length.
The primary objective of SMEL Steel Structural is to establish manufacturing facilities for metal and metal products including Aluminium Foil, Aluminium Flat Rolled Products, Casters, CRM, Foil Stocks, etc.
As a result of this acquisition, SMEL Steel Structrural has become a wholly-owned subsidiary of SSPL and a step down subsidiary of Shyam Metalics and Energy.
Shyam Metalics and Energy is a leading integrated metal producing company based in India with a focus on long steel products and ferro alloys. The company is amongst the largest producers of ferro alloys, one of the leading players in terms of pellet capacity and the fourth largest player in the sponge iron industry in terms of sponge iron capacity in India.
The company reported 35.31% jump in consolidated net profit to Rs 276.14 crore in Q1 FY25 from Rs 204.08 crore in Q1 FY24. Revenue from operations grew by 8.36% year on year to Rs 3,611.61 in the quarter ended 30 June 2024.
The scrip shed 0.57% to settle at Rs 804.70 on Friday, 23 August 2024.