Sambhav Steel Tubes Limited, a prominent player in India’s steel sector, has made its presence felt through the manufacturing of Electric Resistance Welded (ERW) steel pipes and structural hollow tubes. As of March 31, 2024, it is among the top manufacturers in terms of installed capacity, underlining its operational scale and robust domestic demand.

IPO Overview:

The company launched a Book Built IPO worth ₹540 crore, comprising:

• Fresh Issue: ₹440 crore through 536.58 lakh shares

• Offer for Sale (OFS): ₹100 crore through 121.95 lakh shares

The issue opened on June 25, 2025, and closed on June 27, 2025. Listing is expected on July 2, 2025, on both NSE and BSE. The IPO has been managed by Motilal Oswal Investment Advisors Ltd and Nuvama Wealth Management Ltd, while KFin Technologies Ltd acts as the registrar.

IPO Price & Lot Details:

Subscription Status:

As of 7:00 PM on June 27, 2025, the IPO was subscribed 28.46 times. The response from institutional and non-institutional investors was significant, while retail participation remained stable.

GMP Status:

Despite solid subscription, Grey Market Premium (GMP) remains ₹0, indicating that no listing gain is expected. GMP is unofficial and unregulated, and used only as a speculative indicator in unorganised markets.

Anchor Investors Allocation:

Sambhav Steel Tubes raised ₹161.24 crore from anchor investors at ₹82 per share. It allocated 1,96,64,633 equity shares to them on June 24, 2025.

Objectives of the Issue:

The company plans to utilise the net proceeds as follows:

1. ₹390 crore for prepayment or scheduled repayment of certain borrowings.

2. Remaining funds will go towards general corporate purposes.

How to Check Allotment Status:

Allotment will be declared on June 30, 2025 (Monday). Investors can follow these steps to check:

• Visit the KFin Technologies website.

• Select Sambhav Steel Tubes IPO from the list.

• Enter PAN, application number, or DP Client ID.

• Click Submit to view status.

Financial Performance Snapshot:

The financials show moderate growth with FY24 being a peak year. However, the 9-month FY25 figures suggest a slowdown in profitability.

Key Ratios:

The post-issue valuation appears expensive, especially when compared to industry standards and declining EPS.

Management & Promoters:

The company is led by:

• Brijlal Goyal, Suresh Kumar Goyal, and Vikas Kumar Goyal – Promoters with over 20 years of sectoral experience.

• Bhavesh Khetan, Executive Director & COO – A key professional with relevant operational expertise.

Their leadership has helped the company grow and expand its capacity and reach.

IPO Review & Recommendation:

Despite healthy subscription, the GMP remains at ₹0, suggesting no immediate listing gains. The financial performance, while respectable, lacks aggressive growth signals, and the valuation seems stretched on an annualised P/E basis.

Hence, our recommendation is to AVOID this IPO for listing gains. Long-term investors may assess post-listing based on future quarterly performance.

Disclaimer:

This article is for informational and educational purposes only and not investment advice. Readers are advised to consult with SEBI-registered financial advisors before making any investment decision. Investment in the securities market is subject to market risks, and past performance is not indicative of future results.

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