Sambhv Steel Tubes IPO Subscribed 60% On Day One — GMP Rises
The total issue size of Sambhv Steel IPO is of Rs 540 crore, including a fresh issue of Rs 440 crore and an offer for sale by promoters worth Rs 100 crore.
Sambhv Steel Tubes Ltd.'s initial public offer was subscibed 0.60 times or 60% on its first day. The total issue size of the IPO is of Rs 540 crore, including a fresh issue of Rs 440 crore and an offer for sale by promoters worth Rs 100 crore.
The price band for Sambhv Steel Tubes IPO is Rs 77-82 apiece.
The IPO will receive bids until Friday, June 27, after which the stock will tentatively list on the NSE and BSE on July 2. The allotment of shares to IPO investors will occur on Monday, June 30.
The proceeds from the fresh issue of up to Rs 390 crore will be used for prepayment or scheduled repayment of a portion of certain outstanding borrowings, according to the red herring prospectus.
The total borrowings as of December 2024 stood at Rs 619 crore.
IPO Details
Issue opens: June 25.
Issue closes: June 27.
Issue price: Rs 77-82.
Fresh issue: Rs 440 crore.
Offer for sale: Rs 100 crore.
Lot size: Minimum 182 shares.
Market value at upper end of price band: Rs 2,416 crore.
Business
Incorporated in 2017, Sambhv Steel Tubes is a manufacturer of electric resistance welded steel pipes and structural tubes (hollow section) in India. The company's manufacturing facility is located in Sarora, Chhattisgarh, whose installed capacity was recently expanded to enable a higher volume of production, thereby enhancing operational efficiency.
Subscription Status: Day One
Sambhv Steel Tubes IPO has been subscribed 0.60 times on Wednesday.
Qualified Institutions: 0.60 times of 60%.
Non-Institutional Buyers: 0.68 times or 68%.
Retail Investors: 0.57 times or 57%.
Portion reserved for employees: 0.59 times or 59%.
Sambhv Steel Tubes GMP
Sambhv Steel Tubes is likely to deliver strong listing gains, based on the grey market premium. As of 5:30 p.m., the GMP stands at Rs 10, indicating a likely listing price of Rs 92 per share. It was Rs 5 earlier in the day. The expected percentage gain on listing day is 12.2%, according to Chittorgarh's unit InvestorGain.
It should be noted that GMP, or grey market price, is not an official price quote for the stock and is based on speculation.
Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read the red herring prospectus thoroughly before placing bids.
