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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.
WHAT IS GMP?
GMP (Grey Market Premium) is the difference between the IPO price and the grey market price. It is the premium amount paid for the traded IPO shares. It plays an important role in IPOs as it reflects how the IPO would react on the listing day.
A grey market is a place where shares/stocks are traded before being listed officially on the stock exchange.
Sambhv Steel Tubes IPO
| GMP Date | IPO Price | GMP | Last Updated |
|---|---|---|---|
| - | - | - | - |
**The GMP prices displayed here are solely for informational purposes related to the grey market news. India IPO does not engage in or facilitate grey market trading, nor are these rates (sub2) indicative of any trading activity. We also do not recommend or endorse participation in the grey market.**
Sambhv Steel Tubes IPO Details
| Detail | Description |
|---|---|
| IPO Date | June 25, 2025 to June 27, 2025 |
| Listing Date | - |
| Face Value | ₹10 per share |
| Issue Price Band | ₹77 to ₹82 per share |
| Lot Size | 182 Shares |
| Total Issue Size | 6,58,53,657 shares (aggregating up to ₹540.00 Cr) |
| Fresh Issue | 5,36,58,536 shares (aggregating up to ₹440.00 Cr) |
| Offer for Sale | 1,21,95,121 shares of ₹10 (aggregating up to ₹100.00 Cr) |
| Net Offered to Public | 6,58,53,657 shares (aggregating up to ₹540.00 Cr) |
| Issue Type | Bookbuilding IPO |
| Listing At | BSE, NSE |
| Share Holding Pre Issue | 24,10,02,000 shares |
| Share Holding Post Issue | 29,46,60,536 shares |
Sambhv Steel Tubes IPO Timeline
| Detail | Description |
|---|---|
| IPO Open Date | Wed, Jun 25, 2025 |
| IPO Close Date | Fri, Jun 27, 2025 |
| Tentative Allotment | Mon, Jun 30, 2025 |
| Initiation of Refunds | Tue, Jul 1, 2025 |
| Credit of Shares to Demat | Tue, Jul 1, 2025 |
| Tentative Listing Date | Wed, Jul 2, 2025 |
| Cut-off time for UPI mandate confirmation | 5 PM on June 27, 2025 |
Sambhv Steel Tubes IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 182 | ₹14,924 |
| Retail (Max) | 13 | 2366 | ₹1,94,012 |
| S-HNI (Min) | 14 | 2,548 | ₹2,08,936 |
| S-HNI (Max) | 67 | 12,194 | ₹9,99,908 |
| B-HNI (Min) | 68 | 12,376 | ₹10,14,832 |
Sambhv Steel Tubes IPO Promoter Holding
| Share Holding Pre Issue | Share Holding Post Issue |
|---|---|
| 71.90% | - |
Competitive Strength:
- ● The company has a backward-integrated production infrastructure that allows cost savings and quality control.
- ● Proprietary process developments like AOD and ladle refining of special, value-added steel products at reduced costs.
- ● Good and growing distribution channel in various states, which will help in penetrating the market.
- ● The company is positioned to take advantage of demand for steel pipes due to the infrastructure development and the trend of using steel pipes as a substitute for other materials.
- ● Industry expertise and experienced promoters and a management team.
Sambhv Steel Tubes IPO Financial Information
| Period Ended | Assets | Revenue | Profit After Tax | Net Worth | Total Borrowing | |||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 31-Dec-24 | 1,411.82 | 1,018.81 | 40.69 | 478.46 | 619.15 | |||||||||||||||||||||||||||||||||||
| 31-Mar-24 | 940.13 | 1,289.38 | 82.44 | 438.28 | 346.88 | |||||||||||||||||||||||||||||||||||
| 31-Mar-23 | 552.14 | 939 | 60.38 | 210.4 | 282.77 | |||||||||||||||||||||||||||||||||||
| 31-Mar-22 | 458.51 | 820.75 | 72.11 | 149.3 | 241.29 | |||||||||||||||||||||||||||||||||||
| Amount in ₹ Crore | ||||||||||||||||||||||||||||||||||||||||
Key Performance Indicator
| KPI | Values |
|---|---|
| ROE | 25.42% |
| ROCE | 17.66% |
| Debt/Equity | 0.8 |
| RoNW | 25.42% |
| PAT Margin | 6.41% |
| EBITDA Margin | 12.43% |
| Price to Book Value | 4.51 |
| Pre IPO | Post IPO | |
|---|---|---|
| EPS (Rs) | 3.42 | 1.84 |
| P/E (x) | 23.97 | 44.54 |
IPO Objectives
The net proceeds of the fresh issue (440 crore) shall be utilized mainly to repay or prepay some borrowings, to the extent of 390 crore and the rest to general corporate purposes. This will pay off the debt and is likely to enhance the financial position of the company and facilitate future expansion.
Conclusion
The IPO of Sambhv Steel Tubes provides investors with a chance to invest in a fast-growing steel pipe manufacturer with good backward integration, a wide range of products and a wide distribution channel. The company is also in a good position to take advantage of the rising domestic demand of steel pipes and tubes due to infrastructure development and government efforts. The IPO is also priced fairly with good brokerages suggesting subscription and is thus a good investment to those who want to have exposure to the steel manufacturing industry.
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Frequently asked Questions (FAQs )
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1. What is the size of the IPO issue?
The size of the total issue is 540 crore, including a fresh issue of 440 crore and an offer of sale of 100 crore.
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2. How will the company spend the proceeds of the IPO?
The proceeds will largely be utilized to repay borrowings (up to 390 crores) and for general corporate purposes.
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3. When are the shares to be listed?
On July 2, 2025, the shares will be listed on the BSE and NSE.
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4. What are Sambhv Steel Tubes' main products?
ERW steel pipes, black pipes, hollow sections, CRFH pipes, Corten steel pipes, GP pipes, GI pipes and stainless steel products are the most crucial products.
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5. Who are the lead managers for the IPO?
Motilal Oswal Investment Advisors Limited and Nuvama Wealth Management Limited are the Book Running Lead Managers (BRLMs).
