Sambhv Steel IPO Opens Tomorrow: Price Band Set at ₹77–82 Per Share

Sambhv Steel Tubes Ltd is set to open its initial public offering (IPO) for subscription on Wednesday, June 25, with a price band fixed at ₹77 to ₹82 per equity share. The issue will close on Friday, June 27, and marks the company’s debut on the main boards of both BSE and NSE.

IPO Structure and Key Offer Details

Sambhv Steel IPO consists of a total issue size of ₹540 crore, which includes a fresh issue of ₹440 crore and an offer for sale (OFS) of ₹100 crore by promoters and existing shareholders.

• Lot Size: Bids can be placed for a minimum of 182 equity shares and in multiples thereafter.
• Valuation Metrics: The issue commands a price-to-earnings (P/E) ratio of 20.32x to 21.64x based on FY24 diluted EPS.
• Employee Discount: A ₹4 per share discount is being offered to eligible employees.

Post-issue, the company’s shares are scheduled to be listed on Wednesday, July 2, 2025.

Use of Proceeds

The company plans to use proceeds from the fresh issue primarily for the repayment or prepayment of certain borrowings, as well as for general corporate purposes. As of March 2024, the total outstanding borrowings stood at ₹347 crore.

Sambhv Steel Tubes, based in Chhattisgarh, is a leading manufacturer of Electric Resistance Welded (ERW) pipes and structural tubes in India by installed capacity. The company has demonstrated consistent growth, with a weighted average Return on Net Worth (RoNW) of 34.51% over the last three fiscal years.

Strong Financial Performance

Sambhv Steel Tubes has reported consistent top-line growth. Revenue from operations rose from ₹819 crore in FY22 to ₹1,286 crore in FY24, while gross profit improved from ₹200 crore to ₹366 crore during the same period. Gross margins expanded from 24.4% to 28.4%.

Although EBITDA dipped slightly to ₹117 crore in FY23, it rebounded to ₹160 crore in FY24. The profit after tax grew from ₹72 crore in FY22 to ₹82 crore in FY24, despite a decline in EBITDA margin, which fell from 15.2% to 10.5%.

Market Position and Expansion

According to the CRISIL report cited in the Red Herring Prospectus, Sambhv Steel is among the few domestic manufacturers with backward-integrated capabilities in producing stainless steel coils. Its installed capacity has grown significantly from 390,000 MTPA in FY22 to 1,698,000 MTPA in FY25, reinforcing its scalability. The company’s revenues increased from ₹8,193 million in FY22 to ₹10,160 million in FY24, driven by strong demand and distribution across 15 states and one union territory.

IPO Allocation

The IPO allocation is divided as follows:

• Qualified Institutional Buyers (QIBs): 50%
• Non-Institutional Investors (NIIs): 15%
• Retail Investors: 35%

Book Running Lead Managers

The IPO is being managed by Nuvama Wealth Management and Motilal Oswal Investment Advisors, while KFin Technologies is the registrar to the offer. Investors can apply through the ASBA process, and retail and non-institutional investors can also use the UPI mechanism for applications up to ₹5 lakh.

Important Dates:

• IPO Opens: June 25, 2025
• IPO Closes: June 27, 2025
• Allotment Finalisation: June 30, 2025
• Share Credit & Refunds: July 1, 2025
• Listing Date: July 2, 2025

Disclaimer:  At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.

If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com.

Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations