Sambhav Ste

Sambhav Steel Tubes Limited, a major player in India's steel manufacturing landscape, is launching its Initial Public Offering (IPO) on June 25, 2025. The ₹540 crore IPO includes a fresh issue worth ₹440 crore and an offer for sale (OFS) of ₹100 crore by existing shareholders.

About the Company:

Sambhav Steel Tubes Limited is among the prominent Indian manufacturers of Electric Resistance Welded (ERW) pipes and structural hollow steel tubes. These products are widely used in infrastructure, real estate, agriculture, and general engineering applications.

As of March 31, 2024, the company boasts one of the largest installed ERW manufacturing capacities in the sector, which underlines its strong standing in both production scale and domestic distribution. Its client base includes leading construction firms and industrial users, supported by a broad supply chain and warehousing capabilities.

IPO Timeline:

IPO Details:

Sambhav Steel Tubes IPO GMP (as of June 23, 2025):

• Grey Market Premium (GMP): ₹0

• Estimated Listing Price: ₹82

• Expected Listing Gain: 0%

⚠️ Note: GMP is unofficial and can change based on market sentiment and demand-supply dynamics. It should not be considered a reliable indicator for listing price.

Financial Performance Snapshot (₹ in Crores):

Valuation Metrics:

The IPO appears moderately valued in comparison to industry peers, reflecting stable growth, margin expansion, and improving capital efficiency.

Peer Comparison (ERW Pipe Manufacturers):

Use of IPO Proceeds:

The ₹440 crore raised from the fresh issue will be utilized for:

• Expansion of production capacities

• Working capital requirements

• Debt repayment

• General corporate purposes

Should You Apply for Sambhav Steel Tubes IPO?

✅ Strengths:

• Large-scale ERW steel manufacturer with pan-India presence

• Strong revenue growth and improving profit margins

• Expansion potential and favorable market demand

• Reasonable valuation vs peers

⚠️ Risks:

• Commodity price volatility could impact margins

• Heavily dependent on infrastructure and real estate cycles

• GMP is neutral, so listing gains may be limited

Verdict:

Sambhav Steel Tubes IPO is a mid-cap, value-oriented play in the steel manufacturing space. It combines sound fundamentals with scalable operations, appealing to long-term investors. While the listing gains may be subdued, the business has strong potential to benefit from India's infrastructure push.

📌 Recommendation:
✔️ Apply for Long-Term Gains
⚠️ Listing gains may be limited; watch QIB/HNI interest during the IPO window.

Disclaimer

This article is for educational and informational purposes only. It does not constitute investment advice. IPO investments are subject to market risks, and the Grey Market Premium is not officially regulated. Investors are advised to consult a SEBI-registered financial advisor before investing.

The Upcoming IPOs in this week and coming weeks are Supertech EV, Valencia India, Neetu Yoshi, Abram Food, PRO FX Tech, Suntech Infra Solutions, Shri Hare-Krishna Sponge Iron, Icon Facilitators, Ace Alpha Tech, Globe Civil Projects, Sambhav Steel Tubes, Ellenbarrie Indutrial Gases, Kalpataru, HDB Financials, AJC Jewel.

The Current active IPO are  Aakaar Medical Technologies, Safe Enterprises Retail Fixtures, Mayasheel Ventures.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.