Sambhv Steel Tubes IPO receives 1.76 times subscription applications by Day 2

Mumbai, 27 June 2025: The initial public offering (IPO) of Sambhv Steel Tubes concludes today, having already garnered an overall subscription of 1.76 times, mainly supported by participation from non-institutional and retail investors.

Subscription Status from HNIs and Retail Applicants

• Non-Institutional Investors (NIIs): 3.12 times subscribed
• Retail Individual Investors (RIIs): 1.84 times subscribed
• Qualified Institutional Buyers (QIBs): 0.61 times subscribed
• Employee Quota (3.42 lakh shares): 1.52 times subscribed

This response reflects demand from individual and high-net-worth investors, although institutional participation has remained relatively muted.

IPO Structure and Allocation Details

The total issue size is ₹540 crore, with a price band of ₹77 to ₹82 per share. The offering comprises:

• Fresh equity issue worth ₹440 crore
• Offer for sale (OFS) of ₹100 crore

So far, 8.65 crore shares have been bid for, compared to 4.92 crore shares on offer.

Breakdown of allocation is structured as follows:

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

The minimum bid lot is 182 equity shares, and thereafter in multiples of 182.

Use of IPO Proceeds and Anchor Investor Participation

Funds raised from the fresh issue will primarily be utilised to prepay borrowings amounting to ₹390 crore, with the remaining capital set aside for general corporate purposes.

Ahead of the public offering, Sambhv Steel Tubes raised ₹161.25 crore from 19 anchor investors. The anchor book included the following prominent names:

• Citigroup Global Markets Mauritius
• Nomura Singapore
• Societe Generale
• Motilal Oswal Mutual Fund
• WhiteOak Capital Mutual Fund
• Nuvama Asset Management
• BNP Paribas Financial Markets

Company Background and Financial Highlights

Based in Chhattisgarh, Sambhv Steel Tubes is a manufacturer of electric resistance welded (ERW) steel pipes and structural tubes.

Key financial figures include:

• Net profit of ₹40.69 crore on revenue of ₹1,018.81 crore for the nine months ending 31 December 2024
• Net profit of ₹82.44 crore on revenue of ₹1,289.38 crore for the financial year 2023-24

Post-listing, the company’s market capitalisation is projected to exceed ₹2,400 crore.

Listing Plans and Issue Management

Shares of Sambhv Steel Tubes IPO are proposed to be listed on both BSE and NSE. Nuvama Wealth Management and Motilal Oswal Investment Advisors are acting as book-running lead managers, while Kfin Technologies is the official registrar for the issue.

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