Shyam Metalics and Energy Limited has disclosed that the Directorate of Enforcement has issued a provisional attachment order worth Rs. 159.51 crore against its wholly owned subsidiary, Shyam Sel and Power Limited. The order was issued on April 15, 2026, and received by the company on April 16, 2026, via email.

Enforcement Action Details

The provisional attachment order pertains to an ongoing investigation related to alleged illegal coal mining and pilferage in the leasehold areas of Eastern Coalfields Limited. The attachment covers investments in corporate bonds and alternate investment funds held by Shyam Sel and Power Limited.

Company's Position and Clarifications

The company has emphasized that the attachment is provisional in nature and subject to confirmation by the Adjudicating Authority under the Prevention of Money Laundering Act, 2002. Shyam Metalics has clarified that the investigation relates to alleged purchase of coal illegally excavated from Eastern Coalfields Limited mines carried out by certain syndicates.

Importantly, the company stated that no linkage was found with its operations during the course of investigation. The management has confirmed that it is taking appropriate legal recourse in the matter to address the provisional attachment order.

Financial Impact Assessment

The company has provided a detailed assessment of the potential financial implications of the enforcement action:

Regulatory Compliance and Disclosure

The disclosure was made pursuant to Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. The company has committed to keeping the stock exchanges informed of any further material developments in this matter.

The attachment specifically covers investments in corporate bonds and alternate investment funds held by the subsidiary. The company has maintained that there will be no impact on the operations of the listed entity or any of its group companies, as no involvement in illegal coal purchase activities was established during the investigation.

Shyam metalics & energy announced that its wholly owned subsidiary Shyam Sel and Power Limited (SSPL) has successfully commissioned Phase II of its Cold Rolling Mill facility for colour coated sheets. The facility at the Jamuria plant commenced commercial production on April 16, 2026, marking a significant milestone in strengthening the company's value-added steel business.

Capacity Enhancement Details

The commissioning of Phase II has substantially raised the production capacity at SSPL's operations. The expansion details are outlined below:

Strategic Market Positioning

The Phase II expansion comprises an advanced processing Dual Pot GI cum Galvalume line with enhanced technical capabilities for precision-driven applications across industries. This development strategically positions Shyam Metalics to serve the solar energy sector, particularly in manufacturing mounting structures for solar panels, an area previously dependent on imports.

The expansion aligns with the Government of India's Production Linked Incentive (PLI) Scheme – PLI 2, reinforcing the company's commitment to national initiatives aimed at boosting advanced manufacturing and reducing import dependency. The enhanced facility will cater to high-growth sectors including automotive and consumer durables, where demand for high-quality, precision-engineered steel continues to rise.

Business Benefits and Market Impact

The development delivers multiple strategic advantages for the company's market positioning:

Management Commentary

Commenting on the expansion, Mr. Brij Bhushan Aggarwal, Chairman and Managing Director, stated that the commissioning represents a strategic step towards strengthening the value-added product portfolio and improving overall realizations. He emphasized the project's expected contribution to better product mix, margin expansion, and incremental EBITDA over the medium term, with optimal ramp-up anticipated within 10-12 months.

Regulatory Compliance

The announcement was made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosure ensures transparency regarding material developments that could impact the company's operations and market position in the integrated metal production sector.