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The GMP of the Sambhv Steel Tubes IPO currently stands at 14.63%, indicating mild listing gains.
Sambhv Steel Tubes IPO.
Sambhv Steel Tubes IPO Day 3: The initial public offering (IPO) of Sambhv Steel Tubes Ltd has been closed today, Friday, June 27, 2025. The issue, which was opened on June 25 to raise Rs 540 crore, has received a strong response amid decent GMP. Here’s the subscription status and GMP today.
Till 5:00 pm on the final day of bidding on Friday, the IPO received a 30.33 times subscription, garnering bids for 1,40,13,19,920 shares as against the 6,58,69,293 shares on offer. The retail and NII participation stood at 8.56 times and 33.88 times, respectively. Its qualified institutional buyer (QIB) category got a 66.36 times subscription.
The Sambhv Steel Tubes IPO received a 0.41x subscription on Day 1 and a 1.27x subscription on Day 2.
The IPO consists of a fresh issue of equity shares worth Rs 440 crore and an offer for sale (OFS) of Rs 100 crore by the company’s promoter and promoter group shareholders.
Sambhv Steel Tubes IPO: Price Band and Lot Size
The price band has been fixed at Rs 77 to Rs 82 per equity share of face value Rs 10 each. Investors can bid for a minimum of 182 equity shares and in multiples thereof. A discount of Rs 4 per equity share is being offered to eligible employees bidding in the reserved employee portion.
Sambhv Steel Tubes IPO GMP Today
According to market observers, the GMP of the IPO currently stands at 14.63%, indicating mild listing gains.
The GMP is based on market sentiments and keeps changing. ‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
Sambhv Steel Tubes IPO Allotment And Listing Date
The IPO allotment will be finalised on Monday, June 30. The equity shares will be listed on both the BSE and the National Stock Exchange (NSE) on July 2.
Sambhv Steel IPO: Analysts’ Recommendations
Most brokerage firms have issued ‘Subscribe’ recommendations, with most advising investors to take a long-term view due to Sambhv Steel’s backward integration, new capacity ramp-up, and strong product portfolio. They added that growth prospects and debt reduction post IPO offer a compelling long-term case.
Anand Rathi Research
Recommendation: Subscribe for long-term
Anand Rathi said Sambhv Steel Tubes benefits from operational efficiency, backward integration, and a strong distribution network, helping it produce value-added products at scale.
“The issue is valuing at P/E of 44 times to its annualized FY25 earnings, EV/EBITDA of 17 times. We believe that the IPO is fully priced and recommend a ‘subscribe for long term’ rating to the IPO,” it said.
SBI Securities
Recommendation: Subscribe for long-term
According to SBI Securities, Sambhv Steel has ramped up its capacity in high-margin stainless steel products, which is likely to boost margins over the next few quarters.
“With ramp up in capacity utilization of CR coils (SS) and Pre-galvanized (GP) pipes expected over the next 2–4 quarters, margins are likely to expand,” it said, recommending a ‘subscribe’ with a long-term horizon.
BP Equities
Recommendation: Subscribe for long-term
BP Equities flagged high valuations, noting that the IPO is priced at a steep 273 times FY25 annualized earnings, but sees merit in the company’s future growth plans and debt-reduction strategy.
“It remains well-positioned for future growth, considering that it is the only player in this emerging segment with an intention to repay debt and invest in its subsidiary,” the firm said while maintaining a ‘subscribe for long term’ rating.
Canara Bank Securities
Recommendation: Subscribe for long-term
Canara Bank Securities highlighted Sambhv Steel’s integrated model, cost control, and focus on value-added products, stating these factors support a scalable growth path.
“While the valuations appear marginally premium, they are backed by the company’s unique integration model, improving product mix, and a strong growth outlook,” the brokerage said.
Bajaj Broking
Recommendation: Subscribe for long-term
Bajaj Broking attributed the company’s recent lower profitability to provisioning and depreciation costs due to new capacity additions. It expects net profits to rise once debt is reduced post IPO.
“Since the company will clear its debt to the tune of Rs 390 crore post IPO, it will lower its finance cost and translate into higher net profits,” it said, assigning a ‘subscribe for long term’ call.
Marwadi Financial Services
Recommendation: Subscribe
Marwadi Financial Services views Sambhv Steel as well-positioned to benefit from rising demand for ERW pipes and values it attractively against peers.
“We assign ‘subscribe’ rating to this IPO as the company is well-positioned to take advantage of the growing demand for quality ERW steel pipes and tubes with its strong process innovation and execution capabilities,” the note said.
Kunvarji Finserv
Recommendation: Subscribe for long-term
Kunvarji Finserv cited Sambhv Steel’s consistent revenue growth, wide product portfolio, and expanding capacities as reasons for its recommendation.
“We recommend subscribing to this IPO with a medium to long-term view,” it said, citing sectoral tailwinds and diversified offerings.
Sambhv Steel Tubes IPO Proceeds
As per the RHP, Sambhv Steel intends to use the net proceeds from the fresh issue primarily for pre-payment or scheduled repayment of certain outstanding borrowings, and the remaining amount will go towards general corporate purposes.
Sambhv Steel Tubes IPO: Breakdown of Offer for Sale
The Rs 100-crore OFS component includes shares offloaded by the following stakeholders:
- Rs 10 crore by Shashank Goyal (Promoter Selling Shareholder)
- Rs 10 crore by Rohit Goyal (Promoter Selling Shareholder)
- Rs 35 crore by Kaushlya Goyal (Promoter Group Selling Shareholder)
- Rs 10 crore by Harsheet Goyal (Promoter Group Selling Shareholder)
- Rs 35 crore by Rinku Goyal (Other Selling Shareholder)
Sambhv Steel IPO: More Details
The IPO is being offered through the book-building process in line with SEBI’s Issue of Capital and Disclosure Requirements (ICDR) Regulations:
Not more than 50% of the net offer will be allocated to qualified institutional buyers (QIBs). Up to 60% of the QIB portion may be allocated to Anchor Investors, with one-third reserved for domestic mutual funds. A minimum of 15% is reserved for Non-Institutional Bidders (NIIs). At least 35% is reserved for retail investors.
A portion of the shares is also reserved for eligible employees, who will benefit from the Rs 4 discount.
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.
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.
Nuvama Wealth Management Limited and Motilal Oswal Investment Advisors Limited are the Book Running Lead Managers (BRLMs) to the issue.
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to markets, economy and companies. Having a decade of experience in financial journalism, Haris has been previously asso…Read More
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to markets, economy and companies. Having a decade of experience in financial journalism, Haris has been previously asso… Read More
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