Sambhv Steel Tubes IPO

The Raipur-based Sambhv Steel Tubes Ltd. has launched its Initial Public Offering (IPO) in an effort to raise 540 crore. With a lot size of 182 shares and an IPO price range of 77 to 82 per equity share, the minimum investment at the upper band is approximately 14,924. On June 25, 2025, the IPO will begin and on June 27, 2025, it will shut. It consists of a new 440 crore issue of equity shares and an offer of sale (OFS) of 100 crore by the present promoters and shareholders. On July 2, 2025, the shares will be listed on the BSE and NSE.

Company Background

Sambhv Steel Tubes was established in 2017 and produces structural tubes (hollow sections) and electric resistance welded (ERW) steel pipes. The business operates a fully backward-integrated manufacturing facility in Raipur, Chhattisgarh's Village Tilda Tehsil. Sambhv Steel Tubes has vertically integrated its production since it started its operation in 2018, producing sponge iron, blooms, slabs and coils internally.

Operations & Product Range

Facility & Production:
Sambhv Steel Tubes has a one-location, fully backward-integrated plant with an installed capacity of 1.12 million tonnes and it is going to expand this capacity to 1.54 million tonnes soon. This integration allows cost savings and the ability to control the production process of raw material to finished products.

Brands & Market Presence:
The company has a robust distribution network that includes over 700 dealers and OEMs and 43 distributors spread throughout 15 states and one union territory. Its product ranges include stainless steel items, hollow sections, CRFH pipes, Corten steel pipes, GP pipes, GI pipes and black pipes. Sambhv Steel Tubes caters to infrastructure, agriculture, telecom, solar energy and oil and gas industries.

Revenue Channels

The main source of revenue of Sambhv Steel Tubes is the sale of ERW steel pipes and structural tubes. The company has been performing steadily and its revenue has increased by 13.5 percent between FY22 and FY24, i.e., 819.35 crore to 1,285.76 crore. Its revenue and net profit were 1,018.81 crore and 40.69 crore, respectively, in the nine months ended December 31, 2024. It has an EBITDA margin of 12.4%.

Management & Shareholding

The promoters and other current owners will sell a 100 crore share in the IPO. Additionally, the promoters raised 161.25 crore at a higher price range during the anchor investor round. The promoters of the company, Brijlal Goyal, Suresh Kumar Goyal, Vikas Kumar Goyal, Sheetal Goyal, Shashank Goyal and Rohit Goyal owned 71.9 percent shares before the IPO, but after the IPO, their stake will reduce to 57.4 percent.