Shyam Metalics and Energy Limited — Important, 18-06-2026: Disclosure of material issue

SMEL has acquired a 26% stake in Emerge Green Power Private Limited (EGPPL) for ₹0.75 Cr, making EGPPL an Associate Company. EGPPL is a newly incorporated solar power generation company aiming to set up a captive power plant.

**The Issue & SMEL's Response:** High energy costs and the drive for sustainable operations are key challenges. SMEL's acquisition of a 26% stake in EGPPL is a strategic move to address this by securing a captive power source.

**Possible Impact for Investors:**

* **Lower Energy Costs:** Qualifying as a captive user will allow SMEL to procure solar power at preferential tariffs, directly reducing overall energy expenditure.

* **Improved Margins:** Reduced operational costs from cheaper power are expected to positively impact EBITDA margins.

* **Sustainability Boost:** Increases the use of environment-friendly renewable energy, reducing dependence on grid power and enhancing the company's ESG profile.

This move underscores SMEL's commitment to cost efficiency and green energy transition.