Shyam Metalics and Energy Limited’s board has approved the voluntary liquidation of its subsidiary, Shyam Metalics International DMCC (SMIDMCC). Additionally, the board greenlit new projects/expansion plans and appointed Mr. Subrata Bhattacharya as an Additional Director. Capital expenditure for these projects is estimated at ₹6,660 crore. The company is also seeking shareholder approval for Mr. Bhattacharya’s appointment via postal ballot.
Voluntary Liquidation of Subsidiary
The Board of Directors has approved the voluntary liquidation of Shyam Metalics International DMCC (SMIDMCC), a wholly-owned subsidiary, incorporated in Dubai, UAE. This decision was driven by the inability to materialize proposed business activities due to prevailing geopolitical uncertainties. SMIDMCC remained non-operational since its incorporation, incurring operational and compliance costs without generating commercial benefits.
Appointment of Additional Director
Mr. Subrata Bhattacharya has been appointed as an Additional Director in the Independent Category, subject to member approval. His term will span five years, commencing February 1, 2026, and concluding January 31, 2031. The company will seek member approval for the appointment through a postal ballot, with a cut-off date of February 6, 2026.
Details of Approved Projects/Expansion
The Board approved new projects and expansions involving a capital expenditure of approximately ₹6,660 crore:
Wagon Manufacturing Facility at Kharagpur: Capacity of 4,800 wagons per annum, with an estimated cost of ₹200 crore, expected to be commissioned by September 30, 2027.
Blast Furnace Expansion: Increasing capacity from 0.45 MTPA to 0.55 MTPA at an estimated cost of ₹200 crore, slated for completion by June 30, 2027.
Power Plant at Sambalpur: Establishing an 80 MW plant at a cost of ₹450 crore, expected to be operational by June 30, 2027.
Hot Rolling Mill & Furnace: Expanding capacity to 15,80,000 TPA, involving an investment of ₹5,400 crore, and estimated completion date of September 30, 2029.
Blast Furnace Expansion: Increasing capacity from 0.77 MTPA to 0.98 MTPA at an estimated cost of ₹410 crore, targeting completion by June 30, 2027.
Revision of Related Party Transactions Policy
The company has revised its policy on Related Party Transactions to align with regulatory requirements and industry standards. The updated policy is effective from the date of Board approval and is accessible on the company website.
Source: BSE
