
The initial public offering (IPO) of Sambhv Steel Tubes saw a strong bidding interest from the investors during the third and final day of the bidding process from all the categories of the investors. The issue was booked nearly 40 per cent on the first day and ended day two with around 1.25 times subscription.
Sambhv Steel Tubes is selling its shares in the price band of Rs 77-82 apiece. Investors can apply for a minimum of 182 shares and its multiples thereafter. It is looking to raise Rs 540 crore via IPO, which includes a fresh share sale of Rs 440 and an offer-for-sale (OFS) of up to 1.25 crore shares worth Rs 100 crore.
According to the data from BSE, the investors made bids for 1,23,77,47,238 equity shares, or 25.15 times, compared to the 4,92,06,100 equity shares offered for the subscription by 3.50 pm on Friday, June 27, 2025. The bidding for the issue, which kicked-off on Wednesday, shall conclude today.
The allocation for qualified institutional bidders (QIBs) was subscribed 52.26 times, while the portion reserved for non-institutional investors (NIIs) saw a subscription of 31.57 times. The quota set aside for retail investors was booked 7.20 times at the same time.
Incorporated in 2017, Sambhv Steel Tubes is a manufacturer of electric resistance welded (ERW) steel pipes and structural tubes (hollow section) in India. Its manufacturing facility is located in Village Tilda Tehsil, Raipur, Chhattisgarh. It has a wide distribution network in India which extends across 15 states and one union territory.
The grey market premium (GMP) of Sambhv Steel Tubes has seen a decent rise on the third day on the back of strong bidding. Last heard, the company was commanding a premium of Rs 12 per share in the unofficial market, suggesting a 15 per cent listing gains for the investors. The GMP stood around Rs 10-11 a day ago.
Analysts mostly have a positive view on this issue citing its backward integration, strategic location, innovative and diversified product range, wide distribution network, strong financial track record and experienced management. However, capital intensive business, competition and rise in raw material prices are is major concerns.
Sambhv Steel Tubes is valued at a P/E ratio of 44.5 times, which appears reasonably priced relative to its peers. It is strategically positioned to capitalize on India’s infrastructure boom, driven by initiatives such as the Jal Jeevan Mission and Amrit Bharat scheme, said Geojit Investments.
"As a backward-integrated player with consistent financial growth, efficient strategic sourcing, and ongoing expansion plans, the company is well-poised for long-term value creation—supporting a 'subscribe' recommendation for investors," it said.
For the nine-months ended on December 31, 2024, Sambhv Steel Tube reported a net profit of Rs 40.69 crore with a revenue of Rs 1,018.81 crore. The company clocked a net profit of Rs 82.44 crore with a revenue of Rs 1,289.38 crore for financial year 2023-24. The company shall command a market capitalization more than Rs 2,400 crore.
Sambhv Steel Tubes has reserved 50 per cent of the net offer for qualified institutional bidders (QIBs), while non-institutional investors (NIIs) will get 15 per cent of allocation. Remaining 35 per cent of the offer shall be allocated towards retail investors of the issue.
"We assign 'subscribe' rating to this IPO as company is well-positioned to take advantage of the growing demand for quality ERW steel pipes and tubes with its strong process innovation and execution capabilities, said Marwadi Financial Services. "Also, it isavailable at reasonable valuation as compared to its peers."
Nuvama Wealth Management and Motilal Oswal Investment Advisors are the book running lead managers of the Sambhv Steel Tubes IPO, while Kfin Technologies is the registrar for the issue. Shares of the company shall be listed on both BSE and NSE on Wednesday, July 02.