Shyam Metalics and Energy Limited — Important, 11-11-2025: Disclosure of material issue

Shyam Metalics is strategically investing in green energy by acquiring a 26% equity stake in Emerge Green Power Private Limited (EGPPL) for ₹0.75 Cr. This move positions the company as a captive user of solar power, securing a Solar Power Purchase Agreement with EGPPL.

**Issue:** The core purpose is to address energy costs and reliance on grid power for its energy-intensive operations. While Shyam Metalics' core business is steel and ferro alloy, this investment diversifies its energy sources.

**Possible Impact:** This acquisition is expected to significantly reduce the company's energy costs by procuring solar power at a preferential tariff. It will decrease dependence on grid power, improve EBITDA margins due to lower operational expenditure, and contribute to environmental goals by increasing green power usage. This aligns with the company's long-term strategy for reliable, cost-efficient, and sustainable energy, supporting ESG frameworks.

**Company’s Response/Mitigation Plan:** By acquiring a significant stake and becoming a captive user, Shyam Metalics is proactively securing a cost-effective and environmentally friendly power supply for its manufacturing operations. The acquisition is expected to be completed by May 11, 2026.