Sambhv Steel Tubes IPO Priced At Rs 77 To 82: Opens From June 25 – Key Dates, Details & More

Sambhv Steel Tubes is opening its Rs 540 crore Initial Public Offering (IPO), with the price band fixed at Rs 77 and Rs 82 per share. The Sambhv Steel Tubes IPO would open for subscription on Tuesday, June 25, and close on Thursday, June 27.

Allotment to the anchor investor bidding would take place on Monday, June 24. Finalization of the basis of allotment shall be done on Monday, June 30, while refunds shall be started and shares credited to demat accounts on Tuesday, July 1. Shares of the company are likely to be listed on Wednesday, July 2, at the BSE and NSE.

Sambhv Steel Tubes IPO Details:

The Sambhv Steel Tubes IPO will include a fresh issue of equity shares aggregating to Rs 440 crore and an offer for sale by promoters aggregating to Rs 100 crore for 1.22 crore shares. Every equity share has a face value of Rs 10, with the price band fixed at the lower level Rs 77 and the upper level Rs 82. The bid size is 182 equity shares, and the investors can apply in multiple lots of this bid size.

No less than 50% of the Sambhv Steel Tubes IPO is reserved for Qualified Institutional Buyers (QIBs), with a minimum of 35% being reserved for retail investors. Non-Institutional Investors (NIIs) will receive at least 15%. Moreover, shares amounting to Rs 2.5 crore have been reserved for eligible employees as part of the offer.

The IPO is being handled by Nuvama Wealth Management Ltd and Motilal Oswal Investment Advisors Ltd.
Proceeds from the new issue will be utilized largely for repayment of debt and general corporate purposes, enhancing Sambhv Steel's balance sheet.

About Sambhv Steel Tubes:

Sambhv Steel Tubes is a leading manufacturer in India of electric resistance welded (ERW) steel pipes and hollow structural sections. The manufacturing unit of the company is situated in Sarora, Chhattisgarh, a region renowned for its rich mineral resources.

It supplies iron ore from a state-owned "Navratna" firm and coal from a "Maharatna" state-owned unit that runs some of Asia's biggest coal mines at a distance of just 250 kilometers from the plant.

As of March 31, 2024, Sambhv Steel has established a extensive distribution network covering 15 states and 1 union territory with a strong presence in states such as Chhattisgarh, Maharashtra, Gujarat, Haryana, Rajasthan, Uttar Pradesh, Madhya Pradesh, and Telangana.

Competitors:

Sambhv Steel Tubes is an industry player in a competitive environment along with a number of listed counterparts. They are APL Apollo Tubes at a price-to-earnings (P/E) multiple of 68.52, Hariom Pipes Industries at 21.15, Hi-Tech Pipes at 35.52, JTL Industries at 10.16, Rama Steel Tubes at 24.27, and Surya Roshni at a P/E ratio of 10.98.

Market Outlook:

Indian domestic demand for steel pipes is anticipated to witness steady growth from 8.8 million tonnes per annum (MTPA) in FY19 to an estimated 12.5-13.5 MTPA in FY25. Looking ahead further, the demand is expected to be 18.5-20.5 MTPA by FY29, expanding at a compound annual growth rate (CAGR) of 8-9%. The trend is being spurred by increasing infrastructure investments and government initiatives, especially in the oil and gas sector, according to a CRISIL report.

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