📌 Sambhv Steel Tubes Limited IPO – Key Highlights
Sambhv Steel Tubes Limited, a Chhattisgarh-based manufacturer, is launching its Initial Public Offering (IPO). The issue combines a fresh issue to raise capital for the company and an Offer for Sale (OFS) by existing shareholders.
- IPO Size: ₹540 crore
- Fresh Issue: ₹440 crore
- Offer for Sale (OFS): ₹100 crore
- Face Value: ₹10 per share
- IPO Type: 100% Book Built
- Promoters: Brijlal Goyal & Family
- Company Website: sambhv.com
IPO Overview and Schedule
- Date of Opening: June 25, 2025
- Date of Close: June 27, 2025
- Price range for each share: ₹77 to ₹82
- Lot Size: 182 shares
- Minimum Investment: ₹14,924 (at upper price band)
- Listing Exchanges: BSE and NSE
- Listing Date: July 1, 2025
Important Dates
| Event | Date |
|---|---|
| Anchor Investor Bidding | June 24, 2025 |
| Finalization of Allotment | June 30, 2025 |
| Unblocking/Refunds | July 1, 2025 |
| Shares Credited to Demat | July 1, 2025 |
Allocation Structure
The allocation structure includes 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Investors, with an additional employee discount of ₹4 per share.
🏭 About the Company
Sambhv Steel is a Chhattisgarh-based manufacturer of ERW pipes and structural tubes. Its key strategic advantages include:
- The only Indian player with a single-location, backward-integrated facility for sponge iron, HR coils, and pipes.
- The only company manufacturing narrow-width HR coils with backward integration.
- Presence across the value chain—from sponge iron to galvanized pipes.
Strategic Edge:
- Presence in 15 states + 1 UT
- Dealer network of 600+ distributors
- Plant located in Raipur, a logistics & mineral-rich hub
Sambhv Steel Tubes Ltd IPO vs. Listed Peers: At-a-Glance Comparison
Below is a side-by-side look at Sambhv Steel Tubes Ltd alongside six major domestic steel-pipe/tube players. All figures are for FY 2024 and P/E ratios are as of September 27, 2024.
| Metric / Company | Sambhv Steel | APL Apollo | Hariom Pipe | Hi-Tech Pipes | JTL Industries | Rama Steel | Surya Roshni | Peer Avg. |
|---|---|---|---|---|---|---|---|---|
| Revenue (₹ Cr) | 1,285.8 | 18,118.8 | 1,153.2 | 2,699.3 | 2,040.2 | 1,046.5 | 7,809.3 | 5,465.5 |
| EBITDA Margin | 12.43% | 6.58% | 12.02% | 4.26% | 7.46% | 5.74% | 7.33% | 7.65% |
| PAT Margin | 6.41% | 4.04% | 4.93% | 1.63% | 5.54% | 2.87% | 4.21% | 4.03% |
| ROE | 25.42% | 22.16% | 13.54% | 8.83% | 19.12% | 10.25% | 16.34% | 15.08% |
| ROCE | 17.66% | 22.38% | 13.02% | 10.38% | 19.50% | 12.27% | 20.96% | 16.78% |
| Debt/Equity | 0.80 | 0.29 | 0.79 | 0.56 | 0.26 | 0.77 | 0.22 | 0.53 |
| P/E (x) | N.A.* | 58.05 | 39.41 | 73.00 | 35.17 | 30.41 | 24.07 | 43.86 |
Peer Comparison: Key Metrics (FY24)
📈 Sambhv Steel Financial Snapshot
| Particulars (₹ in million) | FY22 | FY23 | FY24 |
|---|---|---|---|
| Revenue | 8,193 | 10,732 | 12,857 |
| EBITDA | 1,245 | 1,371 | 1,599 |
| PAT | 721 | 604 | 824 |
| EBITDA Margin (%) | 15.20% | 12.52% | 12.43% |
| PAT Margin (%) | 8.80% | 6.44% | 6.41% |
Financial Performance (₹ in million)
Investment Rationale & Risk Factors
Key Investment Rationale
- Industry Tailwind: Steel pipe demand to grow at 8–9% CAGR till FY29 (CRISIL).
- Operational Efficiency: Low working capital cycle (41 days vs. peer avg. 57 days).
- High Profitability: 3-year average PAT margin of 7.21% vs. peer average ~4%.
- Product Diversification: Expanding into new product categories.
- Integrated Manufacturing: Complete in-house production process.
Also Read: HDB Financial Services IPO: Dates, Price Band & Review
Risk Factors
- Highly Competitive Market: Operates in a fragmented, commoditized sector.
- Debt Level: Debt/Equity ratio at 0.80 – higher than many peers.
- Cyclicality: Steel prices and margins are sensitive to global trends.
- Pending Capex: Expansions could stretch cash flows.
Also Read: Sacheerome IPO GMP, Subscribed 20x Review
📦 Objects of the IPO
The net proceeds from the Fresh Issue will be utilized for:
- Working Capital Requirements: ₹325 crore
- Debt Repayment: ₹75 crore
- General Corporate Purposes: Remaining balance
Promoters & Selling Shareholders
The Offer for Sale (OFS) of ₹100 crore involves the following shareholders:
| Shareholder | Type | OFS Amount (₹ Cr) | Weighted Avg Cost (₹) |
|---|---|---|---|
| Shashank Goyal | Promoter Selling Shareholder | ₹10.00 Cr | NIL |
| Rohit Goyal | Promoter Selling Shareholder | ₹10.00 Cr | ₹2.16 |
| Kaushlya Goyal | Promoter Group Shareholder | ₹35.00 Cr | ₹1.82 |
| Harsheet Goyal | Promoter Group Shareholder | ₹10.00 Cr | ₹0.85 |
| Rinku Goyal | Other Shareholder | ₹35.00 Cr | NIL |