Sambhv Steel Tubes IPO 2025: Dates, Price Band, GMP, and Key Details You Need to Know: Are you an investor looking to capitalize on India’s booming steel industry? The Sambhv Steel Tubes IPO 2025 is generating significant buzz in the financial markets, offering a unique opportunity to invest in one of India’s leading manufacturers of electric resistance welded (ERW) steel pipes and structural tubes. With a robust financial track record, strategic backward integration, and a growing distribution network, Sambhv Steel Tubes is well-positioned to benefit from India’s infrastructure and industrial growth. However, navigating the IPO process can be overwhelming without the right information. That’s where this comprehensive guide comes in.

In this article, we’ll dive deep into the Sambhv Steel Tubes IPO 2025, covering critical details such as dates, price band, grey market premium (GMP), and other key details you need to know. Whether you’re a retail investor or a high-net-worth individual, we’ll provide actionable insights to help you make an informed decision. Let’s explore why this IPO is worth your attention and how you can participate effectively.

What is the Sambhv Steel Tubes IPO 2025?

The Sambhv Steel Tubes IPO 2025 is a mainboard initial public offering by Sambhv Steel Tubes Limited, a Chhattisgarh-based company specializing in ERW steel pipes and structural tubes. Incorporated in 2017, the company has quickly risen to prominence due to its integrated manufacturing capabilities and extensive distribution network across 15 states and one union territory in India. The IPO aims to raise ₹540 crore through a combination of a fresh issue and an offer for sale (OFS), with the proceeds earmarked for debt repayment and general corporate purposes.

This IPO is a book-built issue, meaning the share price is determined through investor bidding within a specified price band. It is set to list on the BSE and NSE, making it accessible to a wide range of investors. With strong financial growth and a favorable industry outlook, the Sambhv Steel Tubes IPO is a compelling opportunity for long-term investors.

Key Details of the Sambhv Steel Tubes IPO 2025

IPO Dates and Timeline

The Sambhv Steel Tubes IPO 2025 follows a structured timeline to ensure a smooth subscription and listing process. Here are the critical dates:

These dates are crucial for investors to plan their applications and ensure timely action, such as confirming UPI mandates to avoid rejection.

Price Band and Lot Size

The price band for the Sambhv Steel Tubes IPO is set at ₹77 to ₹82 per share, with a face value of ₹10 per share. The minimum lot size for retail investors is 182 shares, requiring a minimum investment of approximately ₹14,014 at the lower end of the price band. To maximize allotment chances, experts recommend bidding at the cut-off price, which would require an investment of ₹14,924 per lot.

Here’s a breakdown of the minimum and maximum investment requirements for different investor categories:

Additionally, the IPO includes a reservation of up to 3,20,513 shares for employees, offered at a discount of ₹4 per share, making it an attractive opportunity for Sambhv Steel Tubes’ workforce.

Issue Size and Allocation

The Sambhv Steel Tubes IPO 2025 aims to raise ₹540 crore, comprising:

• Fresh Issue: ₹440 crore (5.37 crore equity shares)
• Offer for Sale (OFS): ₹100 crore (1.22 crore equity shares)

The allocation is structured to cater to various investor categories:

• Qualified Institutional Buyers (QIB): 50%
• Non-Institutional Investors (NII): 15%
• Retail Investors: 35%
• Employee Reservation: Up to 3,20,513 shares

The company raised ₹161.25 crore from anchor investors on June 24, 2025, with participation from prominent institutions like WhiteOak Capital Mutual Fund, Motilal Oswal MF, and Nomura Singapore, signaling strong institutional confidence.

Grey Market Premium (GMP)

The Grey Market Premium (GMP) reflects investor sentiment in the unofficial market before the IPO lists. As of June 27, 2025, the GMP for the Sambhv Steel Tubes IPO ranged between ₹5 and ₹12. At the upper end of the price band (₹82), this translates to an estimated listing price of ₹87 to ₹94, suggesting potential listing gains of 6.1% to 14.63%.

Note: GMP is speculative and not an official indicator. Investors should consult financial advisors and review the Red Herring Prospectus (RHP) before making decisions.

About Sambhv Steel Tubes Limited

Company Overview

Sambhv Steel Tubes Limited, headquartered in Raipur, Chhattisgarh, is a leading manufacturer of electric resistance welded (ERW) steel pipes and structural tubes. Established in 2017, the company has grown rapidly, leveraging its backward-integrated manufacturing facility to produce high-quality steel products. Its portfolio includes ERW black pipes, galvanized iron (GI) pipes, sponge iron, hot rolled (HR) coils, and structural tubes, catering to diverse sectors such as:

• Housing and infrastructure
• Water transportation
• Agriculture
• Automotive
• Oil and gas
• Telecommunications
• Solar energy
• Fire-fighting systems
• Conveyor support structures

The company’s manufacturing facilities in Sarora (Tilda) and Kuthrel, Raipur, have a combined installed capacity of 1,122,400 MTPA as of March 31, 2024, increasing to 1,698,000 MTPA by March 31, 2025. Sambhv Steel Tubes is one of only two Indian companies capable of producing ERW pipes using narrow-width HR coils, with the added advantage of in-house coil production.

Financial Performance

Sambhv Steel Tubes has demonstrated robust financial growth, making it an attractive investment option. Here’s a snapshot of its financials:

The company’s revenue grew by 37.2% year-on-year in FY24, with a 36.5% increase in profit after tax (PAT). Its return on equity (ROE) stands at 25.42%, and the PAT margin is 6.9%, reflecting strong operational efficiency.

Competitive Strengths

Sambhv Steel Tubes stands out in the competitive steel industry due to:

• Backward Integration: The company’s single-location facility covers the entire production value chain, from sponge iron to finished ERW pipes, reducing costs and enhancing quality control.
• Innovative Products: It produces rust-resistant, customized products tailored to market needs, supported by advanced technologies like hydraulic automatic gauge control (HAGC).
• Wide Distribution Network: With 33 distributors across 15 states and one union territory, Sambhv ensures robust market penetration.
• Certifications: The company holds ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, and ISO 50001:2018 certifications, underscoring its commitment to quality and sustainability.
• Industry Tailwinds: According to a CRISIL report, domestic steel pipe demand is projected to grow at a CAGR of 8–9% from 2025 to 2029, driven by government initiatives like the Jal Jeevan Mission and Amrit Bharat scheme.

Risks and Challenges

While the IPO presents a strong investment case, potential risks include:

• High Debt Levels: The company’s borrowings stood at ₹619 crore as of December 2024, though IPO proceeds will reduce this burden.
• Geographic Concentration: All manufacturing facilities are in Chhattisgarh, increasing exposure to regional risks.
• Raw Material Price Volatility: Fluctuations in iron ore and coal prices could impact margins.
• Competitive Industry: The steel sector is highly competitive, with established players posing challenges.

Why Invest in the Sambhv Steel Tubes IPO?

Growth Potential

Sambhv Steel Tubes is well-positioned to capitalize on India’s infrastructure boom. The company’s focus on value-added products, such as pre-galvanized pipes and stainless steel coils, aligns with rising demand in sectors like water supply, agriculture, and renewable energy. Its planned greenfield facility in Baloda Bazar, Chhattisgarh, will further enhance production capacity, supporting long-term growth.

Reasonable Valuation

At a price-to-earnings (P/E) ratio of 44.5x (based on FY24 earnings), the IPO is reasonably priced compared to the industry average of 32x. Analysts from SBI Securities, Bajaj Broking, and Marwadi Financial Services recommend subscribing for medium to long-term gains, citing the company’s strong fundamentals and growth prospects.

Debt Reduction

The fresh issue proceeds of ₹390 crore will primarily be used to repay outstanding borrowings, reducing interest costs and strengthening the balance sheet. This strategic move enhances financial stability, making the company more attractive to investors.

Case Study: Success of Similar IPOs

To understand the potential of the Sambhv Steel Tubes IPO, consider the case of Jindal Stainless Ltd., which went public in 2003. Like Sambhv, Jindal Stainless leveraged India’s growing steel demand and backward integration to achieve consistent revenue growth. Its stock delivered over 15% CAGR over the past decade, rewarding long-term investors. Sambhv’s focus on niche ERW pipes and a similar growth trajectory suggests comparable potential.

How to Apply for the Sambhv Steel Tubes IPO

Investors can apply for the IPO through online platforms like Zerodha, Upstox, or bank ASBA (Applications Supported by Blocked Amount) services. Here’s a step-by-step guide using Zerodha as an example:

1. Log in to Zerodha Console: Access your account via the Zerodha website or Kite app.
2. Navigate to IPO Section: Go to “Portfolio” and click on “IPOs.”
3. Select Sambhv Steel Tubes IPO: Find the IPO in the list and click “Bid.”
4. Enter Details: Input your UPI ID, desired quantity (minimum 182 shares), and price (preferably the cut-off price of ₹82).
5. Confirm UPI Mandate: Approve the mandate request via your UPI app within the deadline.
6. Submit Application: Verify details and submit.

Ensure you have a demat account and sufficient funds in your linked bank account. Check the allotment status on the KFin Technologies website or BSE/NSE platforms after June 30, 2025.

Expert Opinions and Brokerage Recommendations

Several brokerages have issued positive recommendations for the Sambhv Steel Tubes IPO:

• SBI Securities: Recommends subscribing for long-term gains due to backward integration and industry tailwinds.
• Bajaj Broking: Suggests a long-term investment perspective, citing steady financial growth and expansion plans.
• Marwadi Financial Services: Assigns a “Subscribe” rating, noting reasonable valuation and strong innovation capabilities.
• Geojit Investments: Highlights the company’s strategic positioning in India’s infrastructure boom and recommends subscribing.

However, some analysts caution about the high P/E ratio of 273x based on annualized FY25 earnings, suggesting that cautious investors wait for post-IPO performance.

Internal Links:

1. Sambhv Steel Tubes IPO 2025.
2. Follow Fundmetry.com for more financial updates.

External Links:

Ipowatch.in

FAQ Section

What is the Sambhv Steel Tubes IPO 2025, and Why Should I Consider It?

The Sambhv Steel Tubes IPO 2025 is a ₹540 crore mainboard IPO by Sambhv Steel Tubes Limited, a leading manufacturer of ERW steel pipes and structural tubes. It includes a fresh issue of ₹440 crore and an OFS of ₹100 crore, with shares priced between ₹77 and ₹82. The company’s strong financial growth, backward-integrated manufacturing, and extensive distribution network make it an attractive investment. With a projected listing gain of 6–15% based on GMP and a favorable industry outlook (8–9% CAGR by 2029), it’s a compelling option for long-term investors. However, high debt levels and regional concentration are risks to consider. Consult the RHP and a financial advisor before applying.

How Can I Apply for the Sambhv Steel Tubes IPO?

To apply for the Sambhv Steel Tubes IPO, follow these steps:

1. Open a Demat Account: Ensure you have an active demat account with a broker like Zerodha, Upstox, or through your bank.
2. Access the IPO Application: Log in to your broker’s platform, navigate to the IPO section, and select “Sambhv Steel Tubes IPO.”
3. Enter Details: Provide your UPI ID, bid for at least 182 shares (or multiples), and select the cut-off price (₹82) for better allotment chances.
4. Confirm Payment: Approve the UPI mandate or use ASBA to block funds in your bank account.
5. Submit and Monitor: Submit the application and check the allotment status on KFin Technologies’ website after June 30, 2025.

Applications are open from June 25 to June 27, 2025. Ensure timely UPI mandate confirmation to avoid rejection.

What is the Grey Market Premium (GMP) for Sambhv Steel Tubes IPO?

The Grey Market Premium (GMP) for the Sambhv Steel Tubes IPO as of June 27, 2025, ranges between ₹5 and ₹12, indicating an estimated listing price of ₹87 to ₹94 per share. This suggests potential listing gains of 6.1% to 14.63% over the upper price band of ₹82. The GMP has shown an upward trend, reflecting positive investor sentiment. However, GMP is speculative and not an official indicator. Investors should rely on the company’s fundamentals, such as its 37.2% revenue growth in FY24 and plans for debt reduction, rather than GMP alone.

What Are the Risks of Investing in the Sambhv Steel Tubes IPO?

Investing in the Sambhv Steel Tubes IPO carries several risks:

• High Debt: The company had borrowings of ₹619 crore as of December 2024, though IPO proceeds will reduce this.
• Geographic Concentration: All facilities are in Chhattisgarh, increasing exposure to regional risks like regulatory changes or natural disasters.
• Raw Material Volatility: Fluctuations in iron ore and coal prices could impact profitability.
• Competitive Market: The steel industry is capital-intensive with strong competition from established players.
• High Valuation: The P/E ratio of 273x (annualized FY25 earnings) may deter conservative investors.

Despite these risks, the company’s backward integration, growing demand for ERW pipes, and reasonable valuation compared to peers make it a viable long-term investment. Review the RHP for detailed risk factors.

How Will the IPO Proceeds Be Utilized?

The net proceeds from the fresh issue of ₹390 crore will be used for:

• Debt Repayment: Prepayment or scheduled repayment of certain outstanding borrowings (₹619 crore as of December 2024).
• General Corporate Purposes: Supporting operational and expansion activities, including the planned greenfield facility in Baloda Bazar, Chhattisgarh.

This strategic allocation will strengthen the company’s balance sheet, reduce interest costs, and support capacity expansion, positioning Sambhv Steel Tubes for sustained growth in the competitive steel industry.

Is the Sambhv Steel Tubes IPO a Good Investment for Retail Investors?

The Sambhv Steel Tubes IPO is suitable for retail investors seeking long-term growth, given the company’s strong financials (37.2% revenue growth in FY24, 6.9% PAT margin) and alignment with India’s infrastructure boom. The IPO’s reasonable P/E ratio of 44.5x (compared to the industry average of 32x) and potential listing gains of 6–15% make it appealing. However, risks like high debt and raw material price volatility require caution. Retail investors should bid at the cut-off price (₹82) for better allotment chances and consult a financial advisor to align the investment with their risk profile and goals.

Conclusion

The Sambhv Steel Tubes IPO 2025 offers a promising opportunity for investors to tap into India’s growing steel industry. With a price band of ₹77–₹82, a robust subscription rate (up to 8.36x on Day 3), and a GMP indicating 6–15% listing gains, the IPO has garnered significant interest. Sambhv’s backward integration, strong financial performance, and strategic positioning in high-demand sectors like infrastructure and agriculture make it a compelling long-term investment. However, investors should weigh risks such as high debt and market competition before applying.

Ready to invest? Share your thoughts in the comments below, subscribe to our newsletter for more IPO updates, or consult a financial advisor to make an informed decision. Stay tuned for the listing on July 2, 2025, and don’t miss out on this exciting opportunity!