Sambhv Steel Tubes IPO: Price Band, Financials, Business, GMP — All You Need To Know

Sambhv Steel Tubes Ltd.'s initial public offering will open for subscription on Wednesday, June 25. The total issue size 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 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 price band for Sambhv Steel Tubes IPO is Rs 77-82 apiece.

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.

Sambhv Steel Tubes IPO: Use Of Proceeds

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.

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.

Their products are rust-resistant and tailored to meet specific market requirements, ensuring wide application across multiple sectors including housing and infrastructure, water transportation, agriculture, automobile, telecommunications, oil and gas, engineering, solar energy, fire-fighting systems, and support structures of conveyors.

The company's total sales volume was 1,98,956 million tonnes per annum as of the period ended Dec. 31, 2024.

Brijlal Goyal, Suresh Kumar Goyal, Vikas Kumar Goyal, Sheetal Goyal, Shashank Goyal and Rohit Goyal are the company's promoters.

Financial Performance

Sambhv Steel Tubes reported a consolidated revenue from operations of Rs 1,016 crore in the nine months ended Dec. 31, 2024, as per the prospectus.

The earnings before interest, taxes, depreciation and amortisation stood at Rs 106 crore, leading to an Ebitda margin of 10.47%.

The company's profit after tax was Rs 40.6 crore during the same period. In fiscal 2024, the net profit stood at Rs 82 crore.

When compared with other listed peers in terms of operational profitability during the nine-month period, Sambhv Steel Tubes fares better. Its Ebitda margin of 10.47% is higher as compared to APL Apollo Tubes Ltd. (5.17%), Hariom Pipes Industries Ltd. (13.22%), Hi-Tech Pipes Ltd. (5.36%), JTL Industries Ltd. (7.24%), Rama Steel Tubes Ltd. (2.28%) and Surya Roshni Ltd. (7.12%).

Sambhv Steel Tubes IPO GMP

The grey market premium of Sambhv Steel Tubes is Rs 8 as of 3:00 p.m., June 23, according to InvestorGain. This implies shares of the company are estimated to list at Rs 90 apiece, indicating a 9.7% premium to the upper end of the price band.

However, it should be noted that GMP, or grey market price, is not an official price quote for the stock and is based on speculation.