Sambhv Steel Tubes IPO: Issue booked 0.60x on day 1; check all details

Data from the National Stock Exchange (NSE) showed that till 5 PM, the issue received bids for 2,96,79,832 shares against the offered 4,92,06,100 shares.

The portion reserved for the non-institutional investors (NIIs) category was subscribed to 0.68 times, while the retail individual investors (RIIs) category saw a subscription of 0.57 times. The portion reserved for qualified institutional buyers, or QIBs, was booked 0.60 times on the first day.

Sambhv Steel Tubes on Tuesday had raised ₹161.25 crore from anchor investors, a day ahead of the launch of its initial share sale for public subscription.

WhiteOak Capital Mutual Fund (MF), Motilal Oswal MF, Nuvama Asset Management, Astorne Capital VCC Arven, Citigroup Global Markets Mauritius, Nomura Singapore, Societe Generale, and BNP Paribas Financial Markets, among others, have been allotted shares in the anchor round.

According to a circular uploaded on BSE's website, Sambhv Steel allocated over 1.96 crore equity shares to 19 entities at ₹82 per equity share, which is the upper end of the IPO price band.

The ₹540-crore IPO will open for public subscription till June 27. The price band has been set at ₹77-82 per share for its issue.

The IPO is a mix of fresh issue of equity shares valued at ₹440 crore and an offer for sale (OFS) of shares worth ₹100 crore by promoters.

Proceeds from the fresh issue will be utilised for payment of debt and general corporate purposes.

Sambhv Steel is one of the key manufacturers of electric resistance welded (ERW) steel pipes and structural tubes (hollow section) in India in terms of installed capacity as of March 31, 2024.

Nuvama Wealth Management and Motilal Oswal Investment Advisors are the book-running lead managers to the issue. Sambhv Steel Tubes is expected to list on the BSE and NSE on July 2.