Shyam Metalics and Energy Limited — Important, 29-10-2025: Disclosure of material issue

Shyam Metalics (SMEL) Update: Its wholly-owned subsidiary, Shyam Sel and Power Limited (SSPL), has acquired 100% stake in Star Metalworks Private Limited (SMWPL) for ₹0.01 Cr.

**The Issue:** This acquisition is a related-party transaction, as SMWPL shares were held by promoter group individuals.

**Impact:** SMWPL, which currently has no turnover and is yet to commence business, aims to set up manufacturing facilities for various metal and steel products. This aligns with SMEL's core operations, bringing a future expansion avenue fully into the group.

**Company’s Response:** SMEL confirms the transaction was done on an "arm's length" basis, making SMWPL a wholly-owned step-down subsidiary and integrating its future production capacity under the group.