Shyam Metalics and Energy Limited announced the board’s approval for the acquisition of a 51% controlling equity stake in Alom Solar Private Limited. This strategic move, subject to definitive agreements and necessary approvals, aims for backward integration to secure long-term coal supply for captive power generation and steel plant manufacturing. Upon completion, Alom Solar Private Limited will become a subsidiary. The company also approved an initial ₹360 crore Capex budget for the Phutamura Coal Block.
Shyam Metalics Approves Strategic Acquisition
In a significant move towards backward integration, Shyam Metalics and Energy Limited announced that its Board of Directors has approved the proposal to acquire a 51% controlling equity stake in Alom Solar Private Limited. This acquisition is contingent upon the execution of definitive agreements and the fulfillment of all necessary regulatory approvals. Once completed, Alom Solar Private Limited will officially become a subsidiary of Shyam Metalics and Energy Limited.
Rationale for Acquisition
The primary objective behind this strategic acquisition is to secure a long-term supply of coal, which is crucial for the company’s captive power generation and steel plant manufacturing operations. The target entity, Alom Solar Private Limited, holds mining rights for the Phutamura Coal Block located in the Raigarh District, Chhattisgarh. This block is estimated to cover approximately 7.324 square kilometers and contains reserves of around 170 million tonnes of coal. The company plans to invest approximately ₹183.60 Crores, representing its 51% share of the initial Capex budget of approximately ₹360 Crores, with the remaining 49% to be funded by the joint venture partner.
Other Key Approvals
In addition to the Alom Solar acquisition, the Board of Directors also considered and approved the unaudited financial results for the Second Quarter and Half Year ended September 30, 2026. They also gave in-principle approval for the induction of Mr. Debashis Prasad Pattanaik as a nominee director, representing LIC, subject to necessary formalities.
Financial Reporting
The company also reported its unaudited consolidated financial results for the quarter and half-year ended September 30, 2026. These results were reviewed by the Audit Committee and M/s. MSKA & Associates LLP, the Statutory Auditors. The audited consolidated financial results are available on the company’s website, www.shyammetalics.com.
Source: BSE
