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08 Aug, 2025
Sambhv Steel Tubes which manufactures electric resistance welded (ERW) steel pipes and structural tubes is about to launch its IPO of ₹540-crore on 25th June, 2025 which will be closing on June 27. The IPO will have a fresh issue of ₹440 crore and an offer for sale (OFS) portion of ₹100 crore by its promoters. The price band of the IPO is set at ₹77-82 per share. The issue is structured with a reservation of 50% for QIBs, 35% for retail investors and 15% for non institutional investors.
The company is aiming to repay its debt from the major portion of the IPO proceeds, coming from the fresh issue i.e around ₹390 crore will be used for this purpose. Remaining proceeds from the IPO will be used for general corporate purposes. Laon repayment will strengthen the balance sheet of the company while supporting the future growth initiatives. All the OFS portion will go to the promoters, giving them partial exit.
Sambhv Steel Tubes stands out as one of India’s major ERW steel pipe and structural tube manufacturers, boasting significant installed capacity as of March 31, 2024. The company’s products are widely used in infrastructure, construction and the oil and gas sector. Its strong manufacturing base and established market presence position it well to capitalize on rising demand for steel tubes and pipes, driven by government infrastructure programs and increased investments in core sectors.
According to a Crisil report, domestic demand for steel pipes and tubes has grown at a compound annual growth rate (CAGR) of 5-6% from 8.8 million tonnes per annum (MTPA) in FY19 to 12.5-13.5 MTPA in FY25. This growth has been supported by government initiatives to boost urban infrastructure and investments in oil and gas. Looking ahead, the report projects domestic steel pipe demand to rise further to 18.5-20.5 MTPA by FY29, with an accelerated CAGR of 8-9% between FY25 and FY29, indicating a robust outlook for manufacturers like Sambhv Steel Tubes.
Sambhv Steel Tubes has demonstrated strong financial growth in recent years. The company’s revenue increased from ₹939 crore in FY23 to ₹1,289 crore in FY24, while profit after tax rose from ₹60.4 crore to ₹82.4 crore over the same period. This consistent performance underscores the company’s operational efficiency and ability to scale in a competitive market. The improved financials, coupled with the planned debt reduction from IPO proceeds, are expected to enhance the company’s profitability and return ratios going forward.
Nuvama Wealth Management Ltd and Motilal Oswal Investment Advisors Ltd are the book-running lead managers for the issue. The allotment of shares is expected to be finalized by June 30, with listing scheduled on both the BSE and NSE on July 2, 2025. The IPO’s structure and timing are designed to attract a broad spectrum of investors, leveraging strong sectoral growth and favorable market sentiment.
The Sambhv Steel Tubes IPO offers investors an opportunity to participate in the growth of a leading player in India’s steel pipes and tubes sector. With a clear focus on debt reduction, robust financial performance and a positive industry outlook, the company is well-positioned for future expansion. As the domestic market for steel tubes continues to grow, Sambhv Steel Tubes’ strategic initiatives and strengthened balance sheet post-IPO are expected to drive value for shareholders in the years ahead.