- Bid /Offer will close on Friday, June 27, 2025
- The Anchor Investor Bidding Date shall be Tuesday, June 24 , 2025
- Bids can be made for a minimum of 182 Equity Shares and in multiples of 182 Equity Shares thereafter
- Sambhv Steel Tubes plans to expand its production with a new facility in Kuthrel, Raipur, focusing on producing galvanized and stainless steel products
NE BUSINESS BUREAU
AHMEDABAD, JUNE 22
Chhattisgarh-based Sambhv Steel Tubes Limited on Saturday set a price band of ₹77-82 per share for its upcoming ₹540-crore initial public offering (IPO).
The initial share sale will open for public subscription on Wednesday, June 25 and conclude on Friday, June 27. The Anchor Investor Bidding Date shall be Tuesday, June 24, 2025, the company said.
Bids can be made for a minimum of 182 Equity Shares and in multiples of 182 Equity Shares thereafter.
The IPO is a mix of a fresh issue of equity shares valued at ₹440 crore and an offer for sale (OFS) of shares worth ₹100 crore by promoters. The promoters of the company are Brijlal Goyal, Suresh Kumar Goyal, Vikas Kumar Goyal, Sheetal Goyal, Shashank Goyal and Rohit Goyal.
Proceeds from the fresh issue will be utilised for payment of debt and general corporate purposes.
Sambhv Steel Tubes 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.
“With the massive infra development, Gujarat is one of the key markets for the company,” said Suresh Goyal, Chairman and Whole-Time Director.
Sambhv Steel Tubes plans to expand its production with a new facility in Kuthrel, Raipur, focusing on producing galvanized and stainless steel products. The company’s strategic plan targets an expansion of its finished product capacity to over 1 million tonnes within the next 4-5 years.
Sambhv Steel Tubes announced that half of the offer size has been reserved for qualified institutional buyers, 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors.
A discount of ₹ 4 Per Equity share is being offered to eligible employees bidding in the Employee Reservation portion
According to a Crisil report, the demand for domestic steel pipes and tubes is expected to have grown at a compound annual growth rate (CAGR) of 5-6 per cent to 12.50-13.50 million tonnes per annum (MTPA) in FY25 from 8.8 MTPA in FY19.
The growth was led by government initiatives to augment urban structural infrastructure and to infuse investments in the oil and gas sector.
Going forward, domestic steel pipe demand is projected to increase to 18.50-20.50 MTPA in FY29 at 8-9 per cent CAGR between FY25 and FY29 on a high base, the report added.
The company reported revenue of ₹1,289.38 crores in 2024 against ₹939.00 crore in 2023. The company reported profit of ₹82.44 crores in 2024 against profit of ₹60.38 crores in 2023. As per the financials the IPO investors should apply the IPO for a long term.
These Equity Shares are proposed to be listed on the BSE Limited and the National Stock Exchange of India Limited.
Nuvama Wealth Management Limited and Motilal Oswal Investment Advisors Limited are the Book Running Lead Managers or BRLMs to the Issue.
