Sambhv Steel Ltd., a leading player in the stainless steel and TMT bar manufacturing segment, has opened its initial public offering (IPO) for subscription starting June 26, 2025. The company aims to raise ₹540 crore, a mix of fresh issue and offer for sale (OFS).

According to market watchers, the IPO has seen decent early interest, with a Grey Market Premium (GMP) hovering around ₹10–₹12 per share, implying 6–7% potential listing gain over the issue price.

IPO Details Snapshot

GMP and Listing Outlook

The current GMP of ₹10–₹12 suggests a 6–7% listing gain, translating to an expected price of ₹178–₹180 per share.

While not extraordinary, this premium indicates stable demand and positive sentiment, especially in light of recent steel sector consolidation and global metal price trends.

However, investors are advised to watch:

• Final Day 3 subscription figures

• QIB participation

• Broader market conditions and global metal cues

About Sambhv Steel Ltd.

Sambhv Steel operates in the ferroalloy, TMT bar, and stainless steel segment, with a presence across eastern and central India. Its key business strengths include:

• Integrated manufacturing facilities

• Strong distribution network

• Backward linkages for raw material procurement

The IPO proceeds will be used for:

• Debt repayment

• Capex for facility modernization

• Working capital and general purposes

Should You Subscribe to Sambhv Steel IPO?

Pros:

• Moderate GMP, indicating positive listing sentiment

• Focus on growth and expansion

• Rising demand in infrastructure and construction sectors

Cons:

• Steel and metal sector is cyclical, sensitive to global pricing

• Modest retail premium vs other recent IPOs

• High competition in the TMT and long steel products market

Verdict:
If you're a short-term investor, listing gains may be limited but likely positive. Long-term investors should evaluate Sambhv's balance sheet, debt profile, and expansion pipeline before subscribing.

Disclaimer: This article is for informational purposes only and should not be considered financial advice. Investors are advised to consult with certified financial advisors and read all documents carefully before making investment decisions. Market conditions are subject to change.

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