Sambhv Steel Tubes IPO opens on June 25: Check price band, lot size, allotment date and more

Sambhv Steel Tubes IPO: The initial public offering of Sambhv Steel Tubes will hit the primary market on Wednesday, June 25. The issue will conclude on June 27. The price band has been fixed at ₹77-₹82 per share.

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.

The capital raised to the tune of ₹390 crore will be used for pre-payment or scheduled re-payment of borrowings availed by the company. A portion will also be used for general corporate purposes.

Sambhv Steel Tubes IPO: Lot size

The minimum application size is 182 shares, requiring an investment of ₹14,924 (cut-off price).

The company has set aside half of the net offer for qualified institutional buyers (QIBs), 35% for retail individual investors and the remaining 15% for non-institutional investors (NIIs).

Sambhv Steel Tubes IPO allotment is likely to be finalised on June 30, while the tentative listing date is fixed as July 2.

Motilal Oswal Investment Advisors Ltd and Nuvama Wealth Management Ltd are the book-running lead managers of the issue. KFin Technologies Limited is the registrar.

About the company

Sambhv Steel Tubes is among India's key manufacturers of electric resistance welded (ERW) steel pipes and structural tubes (hollow section) in terms of installed capacity as of March 2024.

The demand for domestic steel pipes and tubes likely grew at a compound annual growth rate, or CAGR, of 5% to 6% to 12.50-13.50 million tonnes per annum in the financial year 2024-25 (FY25) from 8.8 MTPA in FY19, a Crisil report said.

Going forward, the domestic demand for steel pipe is forecasted to surge to 18.50-20.50 MTPA in FY29 at 8%-9% CAGR between FY25 and FY29 on a high base, the report added.