Sambhv Steel Tubes Limited is launching its Initial Public Offering (IPO) to raise capital. The IPO comprises a fresh issue of 5.37 crore shares totaling Rs. 440 crore and an offer for sale of 1.22 crore shares worth Rs. 100 crore. The total IPO size aggregates to Rs. 540 crore. The IPO opens on June 25, 2025, and closes on June 27, 2025. The shares will be listed on NSE and BSE on Wednesday, July 2, 2025. Here’s everything you need to know.
GMP of Sambhv Steel Tubes Limited IPO
As of June 24th, 2025, the shares of Sambhv Steel Tubes Limited in the grey market were trading at an 8.54 percent premium. The shares in the Grey Market traded at Rs. 89. This gives it a premium of Rs. 7 per share over the cap price of Rs. 82.
Overview of Sambhv Steel Tubes Limited
Sambhv Steel Tubes Limited was established in 2017 and is a key Indian manufacturer of electric resistance welded (ERW) steel pipes and structural tubes. Its manufacturing facility is located in Sarora, Raipur, Chhattisgarh, benefiting from proximity to abundant raw materials. The company sources iron ore from a “Navratna” PSU and coal from a “Maharatna” PSU, with mines situated just 250 km away, ensuring efficient supply chain operations.
As of March 31, 2024, the company operates a distribution network spanning 15 states and one union territory, including key markets like Maharashtra, Gujarat, Haryana, Rajasthan, and Uttar Pradesh. Its sales and marketing team consists of 23 personnel as of July 31, 2024, driving nationwide customer engagement.
Sambhv Steel Tubes Limited’s product range includes sponge iron, steel blooms/slabs, narrow-width hot-rolled coils, and GI pipes. These products cater to both industrial consumers and government projects, with a portion used in-house for further processing and the rest sold in the open market.
Promoters of Sambhv Steel Tubes IPO
The promoters include Brijlal Goyal, Suresh Kumar Goyal, Vikas Kumar Goyal, Sheetal Goyal, Shashank Goyal, and Rohit Goyal. These individuals have decades of experience in steel manufacturing and industrial operations.
Sambhv Steel Tubes Selling Shareholders
The OFS includes shares from promoters and promoter group members. Shashank Goyal and Rohit Goyal each sell shares worth Rs. 10 crore. Kaushlya Goyal offers Rs. 35 crore, Harsheet Goyal Rs. 10 crore, and Rinku Goyal Rs. 35 crore.
Lead Managers of Sambhv Steel Tubes IPO
Motilal Oswal Investment Advisors Limited and Nuvama Wealth Management Limited are the Book Running Lead Managers. KFin Technologies Limited is the registrar to the issue.
Objectives of the IPO Offer
Sambhv Steel Tubes Limited plans to utilize the IPO proceeds for two primary objectives. The company will allocate Rs. 390 crore towards prepayment or scheduled repayment of certain outstanding borrowings. The remaining funds will be used for general corporate purposes, supporting day-to-day business needs and future growth initiatives.
Financial Analysis of Sambhv Steel Tubes
Sambhv Steel Tubes Limited’s revenue has increased from Rs. 939 crore in FY23 to Rs. 1,289.38 crore in FY24, which represents a growth of 37.31 percent. The net profit has increased by 36.54 percent from Rs. 60.38 crore in FY23 to Rs. 82.44 crore in FY24.
Sambhv Steel Tubes Limited’s revenue and net profit have grown at a CAGR of 25.34 percent and 6.92 percent, respectively, over the last two years. In the 9M FY25, the company earned revenue of Rs. 1,018.81 crore and a net profit of Rs. 40.69 crore.
Sambhv Steel Tubes Limited vs Peers
Sambhv Steel Tubes reported revenue of Rs. 1,285.76 crore in FY2024 with an EPS of Rs. 3.79 and RoNW of 25.42 percent. In comparison, APL Apollo Tubes Limited earned Rs. 18,118.8 crore with an EPS of Rs. 26.40 and RoNW of 22.21 percent. Hi-Tech Pipes Limited reported Rs. 2,699.29 crore in revenue, Rs. 3.25 EPS, and a higher RoNW of 8.90 percent. The company also has other peers like Hariom Pipes Industries Limited, JTL Industries Limited, Rama Steel Tubes Limited, and Surya Roshni Limited.
The company’s net asset value per share is Rs. 18.19, compared to Rs. 129.60 for APL Apollo Tubes, Rs. 160.50 for Hariom Pipes Industries Limited, Rs. 187.63 for Surya Roshni Limited, and Rs. 43.72 for JTL Industries Limited.
Sambhv Steel Tubes Limited Strengths and Weaknesses
Strengths:
- The company has an experienced promoter group with deep industry knowledge.
- Its manufacturing facilities are strategically located for market access.
- Sambhv Steel Tubes has a diversified product portfolio in steel tubes.
- The company focuses on quality and operational efficiency.
- It has a track record of adapting to market changes and customer needs.
Weaknesses:
- The company faces high competition from established industry peers.
- It is exposed to raw material price fluctuations in the steel sector.
- Sambhv Steel Tubes has a limited operating history as a public company.
- There is dependence on a few key suppliers and customers.
- The IPO involves partial promoter and shareholder exits, which may impact market perception.
Conclusion
Sambhv Steel Tubes Limited’s IPO provides an opportunity to invest in a growing steel tubes manufacturer. With fresh funding, the company targets aggressive expansion. Investors should evaluate financials and sector outlook before subscribing.
Written By – Nikhil Naik
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