Sambhv Steel Tubes IPO

28.31x

subscribed

Sambhv Steel Tubes IPO

Steel & Iron Products
listed
₹14,014Min. investment
  1. Pre-apply
    23 Jun
  2. Bid start
    25 Jun
  3. Bid end
    27 Jun
  4. Allotment
    30 Jun
  5. Release of funds
    1 Jul
  6. Demat transfer
    1 Jul
  7. Listing
    2 Jul

About Sambhv Steel Tubes Limited

SectorSteel & Iron Products
Price range₹77.00 – ₹82.00
IPO type
Regular
Lot size182 shares
Issue size₹540Cr
Red Herring Prospectus
Read
Market Cap
₹2,416.22CrLower than sector avg
RevenueApr 2024 - Mar 2025
₹1,285CrLower than sector avg
Growth rate3Y CAGR
25.27%

Sambhv Steel Tubes Limited IPO Overview

Sambhv Steel Tubes Limited IPO Date

Sambhv Steel Tubes IPO will open for subscription on June 25, 2025, and the closing date for the IPO is June 27, 2025. After this, investors are expected to be updated about the allotment status on Monday, June 30, 2025. Investors who have been allotted shares can expect them to be credited to their demat account on July 1, 2025. The shares will be listed on the NSE and the BSE on Wednesday, July 2, 2025.

Sambhv Steel Tubes Limited IPO Price Band

The IPO includes both a fresh issue of shares and an offer for sale. The IPO price band has been set between ₹77 to ₹82 per share. Interested investors can choose a price within this band to apply for the IPO.

The IPO is a book-building issue, comprising a fresh issue of ₹440 crore and an offer for sale of ₹100 crore.

The Sambhv Steel Tubes IPO listing price will be determined on July 2, 2025. The listing price is the price at which a company’s shares debut on the stock exchanges.

Sambhv Steel Tubes Limited IPO Lot Size

The Sambhv Steel Tubes IPO details have been declared. The minimum lot size for an application is 182 shares, and the investor would have to apply for a minimum of 1 lot. Meanwhile, the IPO issue size is approximately ₹540 crore.

Checklist

Quality analysis
Revenue growth
Company valuation
Earnings expansion
Risk analysis
Debt to Equity ratio
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Revenue
Higher revenue means strong sales and good market demand
This IPO
₹1,285Cr
This sector
₹3,652.65Cr
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PAT
Higher PAT means strong profitability and efficient cost management
This IPO
₹82.44Cr
This sector
₹112.07Cr
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Market cap
Higher market cap means strong confidence but may suggest overvaluation
This IPO
₹2,416.22Cr
This sector
₹6,638.34Cr
Compare with companies
P/E ratio
Lower ratio usually means stock is undervalued
This IPO
21.64
This sector
114.91
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D/E ratio
Lower ratio usually means fewer liabilities
This IPO
1.30
This sector
0.53
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Objectives

Repayment/pre-payment of borrowings
88.60%
General corporate purposes
11.30%

Strength and Weakness

Strategic location advantage

The company's manufacturing facilities are strategically located in Chhattisgarh, close to key raw material suppliers, with coal mines located just 250 km away. This proximity to raw materials, combined with Chhattisgarh's position as an emerging logistics and distribution hub, ensures efficient supply chain management and reduced logistics costs.

Captive power generation capabilities

The company operates a captive power plant with 25 MW installed capacity (expanded from 15 MW in March 2024). This expansion is expected to meet up to 56.40% of total power requirements compared to 43.70% in FY24, resulting in significant cost savings and demonstrating the company's commitment to sustainable energy practices.

Extensive distribution network

As of December 31, 2024, the company has established a strong distribution network with 37 distinct distributors operating through 43 locations across 15 states and 1 UT, serving 700+ dealers across India. This network has contributed 63.83% of revenue from operations in 9MFY25, with a strong presence in West India (28.88%) and North India (27.33%).

Process innovation and product diversification

The company has successfully diversified its product portfolio from sponge iron manufacturing in 2018 to value-added products, including GI pipes, GP pipes, steel door frames, and recently introduced stainless steel products.

Strong financial performance

The company has demonstrated strong financial performance with EBITDA margins consistently outperforming industry peers, achieving 12.43% in FY24 compared to the peer set average of 6.79%. Revenue from operations grew significantly from ₹819.35 crore in FY22 to ₹1,285.76 crore in FY24, with PAT increasing from ₹72.11 crore to ₹82.44 crore during the same period.

About Sambhv Steel Tubes Limited

Incorporated in 2018, Sambhv Steel Tubes Limited is one of the key manufacturers of electric resistance welded (ERW) steel pipes and structural tubes (hollow section) in India. The company operates two manufacturing facilities located in Chhattisgarh.
The company produces narrow-width HR coil, which allows the manufacturing of ERW black pipes and tubes of varying thickness as per customer requirements, reducing dependency on external HR coil suppliers and providing a competitive advantage. The company's rust-resistant products are tailored for wide application across multiple sectors, including housing and infrastructure, water transportation, agriculture, automobiles, telecommunications, oil and gas, engineering, solar energy, fire-fighting systems, and support structures of conveyors. The distribution network extends across 15 states and 1 UT as of December 31, 2024.
The company's ERW pipes and tubes are available in different varying thickness ranges. As of March 31, 2025, the company had a total installed capacity of 1,698,000 MTPA compared to 1,122,400 MTPA as of March 31, 2024, representing significant capacity expansion. The company operates a captive power plant with an installed capacity of 25 MW as of March 31, 2025, expanded from 15 MW as of March 31, 2024, comprising a 16 MW waste heat recovery boiler (WHRB) and a 9 MW atmospheric fluidised bed combustion (AFBC) system.
As of December 31, 2024, the company operates through 37 distinct distributors, with 2 distributors distributing through 6 branches, taking the total distributor network to 43 across 15 states and 1 union territory. These distributors further distribute finished products through over 700 dealers in India.
The Indian steel industry presents a highly promising growth trajectory, with domestic steel demand expected to achieve a robust CAGR of 7-8% over FY25-FY30, rising from an estimated 152 MT in FY25 to 210-230 MT by FY30. This growth is underpinned by India's position as the world's second-largest steel producer with only 7.4% global market share, massive untapped potential with per capita consumption of just 98 kg versus the global average of 219 kg, and strong government commitment evidenced by the ₹10.7 lakh crore infrastructure budget allocation representing an 11.6% increase.
The industry benefits from a favourable steel demand-to-GDP multiplier of 1.5-1.8, indicating steel consumption consistently outpaces economic growth, while key demand drivers including infrastructure development (25-30% of steel demand), building and construction (30-35%), and the automotive sector (11-13%) are all experiencing sustained expansion supported by government policies, affordable housing initiatives, and rising income levels.
The company is strategically positioned to capitalise on the growing demand for ERW steel pipes and tubes, with domestic steel pipe demand projected to increase from 12.50-13.50 MTPA in FY25 to 18.50-20.50 MTPA by FY29 at 8-9% CAGR.
According to the CRISIL Report, the company held approximately 2% market share in the domestic ERW pipes segment in India in terms of sales volume in FY24. The company is one of only 2 players in India manufacturing ERW steel pipes and tubes using narrow-width HR coil as of December 31, 2024, and is among a very limited number of players manufacturing stainless steel coils with backward integration, providing significant competitive positioning in the market.
Now, Sambhv Steel Tubes Limited is launching its initial public offering (IPO), which consists of a fresh issue of equity shares worth up to ₹440 crore and an offer for sale worth up to ₹100 crore. The total issue size of the IPO is ₹540 crore. Its shares will be listed on the NSE and BSE.

IPO Analysis

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Sambhv Steel Tubes IPO
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IPO Subscription Status

Date
QIB
NII
Retail
Total
25-Jun-25
0.6 times (X)
0.5 times (X)
0.59 times (X)
0.57 times (X)
26-Jun-25
0.61X
2.87X
1.86X
1.72X
27-Jun-25
62.32X
30.82X
7.81X
28.31X

Latest News on IPO

news logo
Sambhv Steel Tubes Limited filed a draft red herring prospectus (DRHP) with the capital market regulator Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) to raise ₹540 crore. The IPO consists of a fresh issue of equity shares amounting to ₹440 crore and an offer for sale (OFS) by existing shareholders worth ₹100 crore​.
news logo
The Sambhv Steel Tubes IPO price band has been fixed in the range of ₹77 to ₹82 per equity share of the face value of ₹10. The Sambhv Steel Tubes IPO date of subscription is scheduled for Wednesday, June 25, and will close on Friday, June 27. The allocation to anchor investors for the Sambhv Steel Tubes IPO is scheduled to take place on Tuesday, June 24.
news logo
Sambhv Steel Tubes IPO: The ₹540 crore initial share sale consists of a fresh issuance of equity shares worth ₹440 crore as well as an offer for sale (OFS) valued at ₹100 crore by promoters.

2 min read

news logo
The ₹12,500 crore initial public offering of HDB Financial Services, a subsidiary of HDFC Bank, is a mix of a fresh capital raise of ₹2,500 crore and an offer for sale (OFS) of ₹10,000 crore.

3 min read

Frequently asked questions

How to invest in the IPO?

Investors can apply for the IPO through their Demat account via the stock exchange or through their broker.

What is the issue size of Sambhv Steel Tubes IPO ?

The issue size of the Sambhv Steel Tubes IPO is 540 Cr.

What is 'pre-apply' for Sambhv Steel Tubes IPO ?

Pre-applying for an IPO allows you to submit your application before the official subscription period begins.

Which exchanges will Sambhv Steel Tubes IPO shares list on?

The IPO shares will typically list on major stock exchanges such as the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), as specified in the IPO prospectus.