Sambhv Steel Tubes’ ₹540 crore initial public offering closes for subscription today. The steel pipe manufacturer’s issue, priced between ₹77 and ₹82 per share, attracted bids for 8.65 crore shares against a total offering of 4.92 crore shares, resulting in a subscription of 1.76 times.
Sambhv Steel Tubes specified that 50% of the total offer has been allocated to qualified institutional buyers, 35% to retail investors, and the remaining 15% to non-institutional investors. Investors can bid at a lot size of 182 equity shares and its multiples thereafter.
Non-institutional investors led the subscription, with a 3.12 times uptake, followed by retail investors who subscribed 1.84 times their allocated portion. Qualified institutional buyers (QIBs) were subscribed 0.61 times, and employees (3.42 lakh shares) received bids 1.52 times.
The Chhattisgarh-based company, which manufactures electric resistance welded (ERW) steel pipes and structural tubes, is raising funds through a combination of a fresh issue worth ₹440 crore and an offer for sale (OFS) of ₹100 crore.
The fresh issue proceeds will primarily be used for prepayment of outstanding borrowings worth ₹390 crore, with the remainder allocated for general corporate purposes.
As part of the IPO exercise, it mobilised Rs 161.25 crore from 19 anchor investors as it allocated 1.96 crore shares at Rs 82 apiece. Astorne Capital VCC, Arven, Citigroup Global Markets Mauritius, Nomura Singapore, Societe Generale, WhiteOak Capital Mutual Fund (MF), Motilal Oswal MF, Nuvama Asset Management, and BNP Paribas Financial Markets participated in the anchor book.
For the nine months ended December 31, 2024, Sambhv Steel Tube reported a net profit of Rs 40.69 crore, with revenue of Rs 1,018.81 crore. The company recorded a net profit of Rs 82.44 crore, along with revenue of Rs 1,289.38 crore, for the financial year 2023-24. The company shall command a market capitalisation of more than Rs 2,400 crore.
Nuvama Wealth Management and Motilal Oswal Investment Advisors are the book-running lead managers of the Sambhv Steel Tubes IPO, while Kfin Technologies is the registrar for the issue. Shares of the company shall be listed on both BSE and NSE.
Published on June 27, 2025