Sambhv Steel Tubes Makes Strong Market Debut: Listed on NSE and BSE with 34% Premium

Sambhv Steel Tubes Ltd, a backward-integrated producer of electric resistance welded (ERW) steel pipes and structural tubes, made an impressive debut on the stock exchanges, listing at a premium of 34% over its issue price.

Sambhv Steel Tubes shares opened at ₹110 on the NSE and ₹110.10 on the BSE, significantly higher than the IPO issue price of ₹82 per share.

Sambhv Steel Tubes IPO Details

The ₹540 crore initial public offering (IPO) of Sambhv Steel Tubes was open for subscription from June 25 to June 27, with a price band of ₹77–82 per share. The issue comprised a fresh equity offering worth ₹440 crore and an offer for sale (OFS) of ₹100 crore by existing promoters.

Ahead of the IPO, the Raipur-headquartered company secured ₹161.25 crore from a group of prominent anchor investors, including WhiteOak Capital MF, Motilal Oswal MF, Nuvama Asset Management, Astorne Capital VCC Arven, Citigroup Global Markets Mauritius, Nomura Singapore, Societe Generale, and BNP Paribas Financial Markets.

Utilisation of IPO Funds

The net proceeds from the fresh issue are earmarked for debt repayment and other general corporate purposes, aiming to strengthen the company’s financial position.

Also Read: V-Mart Retail Shares in Focus: Continues Strategic Expansion in Q1FY26

About Sambhv Steel Tubes

Sambhv Steel ranks among India’s leading manufacturers of ERW steel pipes and hollow structural sections by installed capacity, as of March 31, 2024.

According to a CRISIL report, the domestic demand for steel pipes and tubes is projected to grow at a compound annual growth rate (CAGR) of 5–6%, reaching 12.5–13.5 million tonnes per annum (MTPA) by FY25, up from 8.8 MTPA in FY19. This growth trajectory is largely driven by government investments in infrastructure and the oil & gas sector.

In FY24, Sambhv Steel reported a 37% year-on-year rise in revenue to ₹1,285.76 crore. Net profit stood at ₹82.44 crore, with EBITDA margins at a healthy 12.4%. The company’s net worth surged from ₹210.4 crore in FY23 to ₹438.28 crore in FY24. However, total borrowings increased to ₹619.14 crore—highlighting the need for capital infusion to optimise the balance sheet.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.