Shyam Metalics expands steel capacity with subsidiary acquisition, plant upgrade

Shyam Sel and Power Limited (SSPL), a wholly-owned subsidiary of Shyam Metalics and Energy Limited, has acquired 100% of Star Metalworks Private Limited (SMWPL) by purchasing 10,000 equity shares for INR 1,00,000. This makes SMWPL a wholly-owned subsidiary of SSPL and a step-down subsidiary of Shyam Metalics. The acquisition is a related party transaction involving promoter group individuals, Sheetij Agarwal and Shubham Agarwal, executed at arm's length.

Separately, Ramsarup Industries Limited (RIL), also part of Shyam Metalics, is set to commission a modern Blast Furnace and Linear Sinter Plant by November 2025. This expansion, a INR 369 crore investment, will increase the plant's production output by 0.45 million tonnes per annum (MTPA) and is designed to enhance efficiency and reduce costs.

SMWPL, incorporated in 2022, is yet to commence business operations but aims to establish manufacturing facilities for various metal and steel products, aligning with the acquiring company's main objectives. These strategic moves underscore Shyam Metalics’ commitment to expanding its production capabilities.