Shambhav Steel Tubes IPO Sees Slow Start; Subscribed 32% on Opening Day; Strong Buzz With GMP; Apply or Avoid?

The Rs. 540 crore IPO of Shambhav Steel Tubes Ltd opened for public subscription on June 25, 2025, and witnessed a lukewarm response on Day 1, getting subscribed 0.31 times overall. While institutional interest remained soft, retail investors and small NIIs (non-institutional investors) showed relatively stronger participation on the opening day.

The IPO window will remain open until June 27, 2025. The basis of allotment is expected on June 30, and the shares are likely to list on both BSE and NSE on July 2, 2025.

Shambhav Steel Tubes IPO Day 1 Subscription Breakdown

By 3:29 PM on Day 1, the Shambhav Steel Tubes IPO saw retail investor bids at 0.50x, NII at 0.36x, and QIB at 0.16x. Within the NII category, small NIIs (sNII) subscribed 0.54 times, whereas big NIIs (bNII) were at 0.26 times. The employee quota was subscribed to at 0.38x. In total, 2.04 crore shares were bid for, against the 6.58 crore shares on offer.

Shambhav Steel Tubes IPO Structure and Price Band

Shambhav Steel Tubes' IPO comprises a fresh issue of Rs. 440 crore (5.37 crore shares) and an offer for sale (OFS) of Rs. 100 crore (1.22 crore shares). The price band is set at Rs 77 to Rs 82 per share, with a lot size of 182 shares.

Ahead of the public issue, anchor investors were allotted 1.96 crore shares at Rs 82 each on June 24. This pre-IPO placement brought in Rs 161.25 crore and set the tone for the issue.

Grey Market Buzz and Listing Estimates

According to the latest grey market data (as of June 25, 2:29 PM), the GMP is hovering around Rs. 10 per share. This places the estimated listing price at Rs 92, suggesting a 12.2% potential gain over the upper issue price of Rs 82, assuming stable sentiment.

What Investors Should Watch For

SBI Capital Securities has recommended investors subscribe to the issue at a cut-off price with a long-term investment horizon.
The IPO note stated, "Sambhv Steel Tubes stands out as one of the few players in India with a backward integration facility, enabling it to offer a diverse portfolio of premium products in a cost-efficient manner. Between FY24 and FY25, the company enhanced its manufacturing capabilities to include Stainless Steel (SS) Bloom, SS Hot Rolled Coils, SS Cold Rolled Coils and SS HRAP Coils-products known for their high margin potential. Additionally, it commenced production of Pre-Galvanised (GP) pipes and GP pipes, further expanding its value-added offerings."

Canara Bank Securities has given a 'Subscribe' rating for the Sambhv Steel Tubes IPO for long-term investors. According to the review, "On the valuation front, the IPO is priced at a P/E of 36.39x (annualised 9M FY25) and 21.64x (FY24), compared to a peer average of around 27.14x. The Price-to-Book (P/B) ratio stands at 4.13x (9M FY25) and 4.51x (FY24), marginally above the sector average of 4.64x. While these valuations may seem slightly premium, the brokerage believes they are justified by the company's integrated operations, diversified product mix, and strong sector outlook." With two bidding days still to go, investor sentiment, especially among QIBs and large NIIs, is expected to pick up.

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