Shyam Metalics & Energy Limited (SMEL) has announced that eligible employees have exercised 57,900 stock options under the company's SMEL Loyalty ESOP Scheme (ESOP II - 2023), generating ₹12.8 crore for the company. This development marks a significant milestone in the company's employee stock ownership program.

Key Details of the Stock Option Exercise

ESOP Scheme Overview

The exercised options are part of a larger grant of 2,16,000 options to five eligible employees under the SMEL Employee Stock Incentive Plan - 2023 (ESIP - 2023). The vesting schedule for these options is structured over three years:

The 57,900 options exercised represent the second-year vesting tranche, which became available to employees on September 27, 2025. Employees had a six-month window to exercise these options, an opportunity they promptly utilized.

Pricing and Market Considerations

The exercise price of ₹221.00 per share represents a 50% discount to the market price on the grant date of September 27, 2023. This pricing strategy aims to provide a valuable benefit to employees while aligning their interests with those of the company's shareholders.

Impact on Company Finances

The exercise of these options has resulted in a cash inflow of ₹12.80 crore for Shyam Metalics & Energy Limited. This additional capital could potentially be used for various corporate purposes, although the company has not specified its intended use in the announcement.

Regulatory Compliance

The company has duly informed the stock exchanges about this development, in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This transparency ensures that all stakeholders are kept informed about significant events related to the company's equity structure.

The exercise of these stock options demonstrates the confidence of Shyam Metalics' employees in the company's future prospects. It also highlights the effectiveness of employee stock ownership plans in fostering a sense of ownership and aligning employee interests with company performance.

Shyam Metalics & Energy Limited (SMEL), a leading integrated metal manufacturing company in India, has announced its ambitious Vision 2031 strategy alongside the commencement of Phase I of its greenfield cold rolling mill at the Jamuria plant in West Bengal. These developments mark significant steps in the company's growth trajectory and its commitment to enhancing its product portfolio.

Vision 2031 Strategy

• Revenue Target: SMEL aims for a 2.5x revenue growth, targeting ₹400.00 billion by 2031.
• Capital Expenditure: Plans to invest ₹100.00 billion, primarily funded through internal accruals.
• Capacity Expansion: Aims to increase aggregate capacity from 15 million tons to 27 million tons, covering intermediate and finished products.
• Focus Areas: Expansion will concentrate on downstream and high value-added segments including specialty steel, stainless steel, flat products, and aluminum.
• Expansion Locations: Brownfield expansions across West Bengal, Odisha, and Madhya Pradesh.
• Financial Projections: Expects EBITDA margin improvement of 200-300 basis points post expansion.
• Export Growth: Aims to double export revenues from $150 million to $300 million.
• Job Creation: Projected to create over 10,000 new direct and indirect jobs, bringing total employment to around 27,500.

New Cold Rolling Mill

• Facility Details: Operated by Shyam Metalics Flat Products Pvt Ltd. (a wholly-owned step-down subsidiary), began trial runs in September.
• Capacity and Investment: Annual capacity of 400,000 tons, with a total capital cost of ₹603.00 crores.
• Products: Will produce pre-painted galvalume coils (PPGL) and galvanized iron/galvanized steel coils (GI/GL).
• Strategic Location: Addresses the shortage of colour-coated sheet manufacturing units in eastern India.

Financial and Operational Impact of Cold Rolling Mill

Strategic Implications

1. Product Portfolio Expansion: The new facility enhances SMEL's ability to produce high-quality steel products, strengthening its integrated steel manufacturing capabilities.
2. Market Positioning: By addressing the shortage of colour-coated sheet manufacturing units in eastern India, SMEL aims to reinforce its position as a key supplier in the region.
3. Cost Advantages: The company plans to leverage lower production costs and logistical advantages due to the strategic location of the facility.
4. Support for Government Initiatives: The Cold Rolling Mill will support housing, warehousing, and industrial applications, including affordable housing initiatives like PMAY (Pradhan Mantri Awas Yojana).
5. Technological Advancements: SMEL plans to leverage European technology partnerships for product development.
6. Resource Acquisition: The company has recently secured iron ore mining assets in Maharashtra.

Management Commentary

Brij Bhushan Agarwal, Chairman & Managing Director of Shyam Metalics & Energy Ltd, commented on the Vision 2031 strategy: "Our vision reflects confidence in India's long-term growth story and aims to deliver sustainable growth and stronger shareholder value."

Regarding the cold rolling mill expansion, he added: "Our foray into cold rolling mills underscores our dedication to innovation, sustainability, and contributing to India's growth story. This expansion is a crucial step in our journey towards value-added products, and it will significantly enhance our production capabilities."

Conclusion

Shyam Metalics & Energy Limited's Vision 2031 strategy, coupled with the launch of Phase I of the greenfield cold rolling mill, represents significant milestones for the company. As SMEL aims to optimize the new facility's utilization over the next two years and implement its long-term growth strategy, it is poised to strengthen its market position, diversify its product offerings, and contribute to the industrial advancement of the region while maintaining its commitment to environmental sustainability and shareholder value.