Sambhv Steel Tubes IPO: Sambhv Steel Tubes Ltd, a manufacturer of Electric Resistance Welded (ERW) steel pipes and structural tubes, is set to launch its Initial Public Offering (IPO) on June 25, 2025. The issue will remain open for subscription until June 27, 2025. The company aims to raise Rs 540 crore through the IPO, which will be used for the scheduled repayment of a portion of certain outstanding borrowings and for general corporate purposes. The IPO comprises a fresh issue of 5.37 crore shares (Rs 440 crore) and an offer for sale of 1.22 crore shares (Rs 100 crore).

Sambhv Steel Tubes IPO: Price band, issue size, lot size, other details

Sambhv Steel Tubes IPO Details:

• Sambhv Steel Tubes IPO Price Band: Rs 77 to Rs 82 per share
• Sambhv Steel Tubes IPO Lot Size: 182 shares and in multiples thereafter
• Sambhv Steel Tubes IPO Face Value: Rs 10 per share
• Sambhv Steel Tubes IPO Post-Issue M-Cap: Rs 2,296 to Rs 2,416 crore
• Sambhv Steel Tubes IPO Issue Size: Rs 540 crore
• Sambhv Steel Tubes IPO Fresh Issue: Rs 440 crore
• Sambhv Steel Tubes IPO OFS: Rs 100 crore

Sambhv Steel Tubes Financial Performance: Net profit, revenue & EBITDA 

Sambhv Steel Tubes revenue

The company has shown steady growth in its revenue over the past few years. Its revenue from operations increased from Rs 819 crore in FY22 to Rs 1,286 crore in FY24. For the nine-month period ending December 2024 (9MFY25), it reported revenue of Rs 1,016 crore. Gross profit also improved from Rs 200 crore (FY22) to Rs 366 crore in FY24, while gross margins increased from 24.4 per cent to 28.4 per cent.

In 9MFY25, the company recorded a gross profit of Rs 309 crore, with margins further improving to 30.5 per cent.

Sambhv Steel Tubes EBITDA performance

EBITDA declined slightly from Rs 125 crore (FY22) to Rs 117 crore in FY23 but rose to Rs 160 crore in FY24. For 9MFY25, EBITDA stood at Rs 106 crore.

However, EBITDA margins decreased from 15.2 per cent (FY22) to 10.5 per cent in the latest reported period.

Sambhv Steel Tubes net profit

The company’s Profit After Tax (PAT) was Rs 72 crore in FY22 and Rs 60 crore in FY23, and Rs 82 crore in FY24. In 9MFY25, PAT came in at Rs 41 crore.

Sambhv Steel Tubes IPO: BRMLs, registrar details

The book running lead managers (BRLMs) for the Sambhv Steel Tubes IPO are Nuvama Wealth Management and Motilal Oswal Investment Advisors. The registrar to the issue is KFin Technologies Ltd, which will handle the share allotment and investor-related services for the IPO.

Investor Allocation Structure:

The IPO’s investor allocation structure across various investor categories as follows:

Qualified Institutional Buyers (QIB): 50 per cent

Non-Institutional Investors (NII): 15 per cent

For Retail Investors: 35 per cent

Employee Discount: Rs 4 per share

What does Sambhv Steel Tubes do?

Sambhv Steel Tubes stands among the top manufacturers of ERW steel pipes and hollow structural tubes in India, based on installed capacity as of March 2024. It boasts good backward integration, enabling in-house manufacturing of intermediate products like sponge iron, HR coils, CR coils, and GP coils, which are used to produce a wide range of finished products.

The company is also one of only two players in India (as of December 2024) that manufacture ERW pipes using narrow-width hot rolled coils. Its rust-resistant products find applications across diverse sectors such as housing, infrastructure, agriculture, water transportation, oil & gas, engineering, solar power, and fire-fighting systems.