Sambhv Steel Tubes Limited IPO:Price band set at ₹77-82 per share

Sambhv Steel Tubes Limited is a promising IPO that will give investors exposure to the growing manufacturing and steel sector in India. The Company is focused on manufacturing high-quality, steel tubes and pipes for the construction, infrastructure, automotive, and industrial applications, and has established itself as a reliable player in steel tubes manufacturing. India continues to witness significant growth in infrastructure development and industrial sector expansion.

The IPO is a fresh issue for a value of ₹540.00 Crores with a price of ₹82 per share, and will be listed on BSE SME. The current GMP is ₹8 (9.76% premium), which shows a positive sign for the offering and signals good investor interest in the steel manufacturing sector.

IPO Dates for Sambhv Steel Tubes Limited

The Sambhv Steel Tubes Limited IPO is scheduled to open on June 25, 2025, and close on June 27, 2025. The allocation date is expected to be announced by June 30, 2025, with listing planned for July 2, 2025.

IPO Details Summary

About Sambhv Steel Tubes Limited IPO

Sambhv Steel Tubes Limited is an integrated steel tubes and pipes manufacturer that provides high-quality products for numerous industrial applications. The products the company is engaged to manufacturing, consist of types of steel tubes including structural tubes, scaffolding tubes, ERW (Electric Resistance Welded) pipes, and other customized steel products within many sectors including construction, infrastructure, automotive, and industrial manufacturing. 

Sambhv Steel Tubes has created a reputation in the steel manufacturing supply chain by producing quality, compliant products with manufacturers' specs, industry standards, and the most stringent customer specifications. Although, the company manufactures under strict quality control, cost and technological innovations as a steel tube and pipe manufacturer are operating in a way that has established them as a 'go-to' steel tube and pipe supplier to a wide range of industries throughout India. 

Currently, the company is offering a fresh issue of ₹540.00 crores. The proceeds from the IPO will be used for a combination of capacity expansion, modernization of manufacturing facilities, working capital needs, debt pay down, and strengthen its market position within the competitive steel tube and pipe manufacturing space.

The organization gives full services from steel tubes & pipes, raw materials, quality and testing, and customer services giving total solutions to clients. With government driven infrastructure development, Make in India initiative, and the increased demand for steel products throughout sectors, the company has the opportunity to expand its scope of business in the steel manufacturing industry.

Financial Performance of Sambhv Steel Tubes Limited

The company has demonstrated strong financial performance with consistent growth across key metrics:

Amount in ₹ Crores

Performance Analysis

Sambhv Steel Tubes Limited has demonstrated remarkable financial growth, growing total assets from ₹77.93 Cr. to ₹120.28 Cr.. Revenues grew steadily from ₹72.32 Cr. to ₹96.25 Cr.; and PAT increased more than threefold from ₹3.02 Cr. to ₹9.25 Cr.; and improved its net profit margin (from 4.2% to 9.6%); which reflects not only improved operational efficiency but also better oversight over controlling costs. The company's net worth nearly doubled, going from ₹20.56 Cr. to ₹38.56 Cr. and total borrowings increased to ₹56.38 Cr. of the total assets; this would indicate hikes in debt associated with expansion (a normal part of the business process in manufacturing). The company's debt-equity ratio of 1.46 suggests relatively manageable levels of leverage for a capital-intensive steel manufacturing business.

IPO Share Reservation

The IPO share allocation follows standard SEBI guidelines for SME listings:

Sector Comparison

Latest reported period (Mar-24)

Know Before Investing

Risks

1. Raw Material Price Volatility
Steel tube manufacturing depends heavily on steel coils and other inputs. Fluctuations in raw material prices can directly impact profitability and margins.

2. Cyclical Nature of the Industry
Steel demand is closely linked to economic cycles, government infrastructure spending, and industrial activity—making it vulnerable to economic slowdowns.

3. Working Capital Intensive
The business requires substantial working capital for inventory, raw material procurement, and customer credit, which may strain cash flows.

4. Competition with Established Companies
The steel tubes and pipes market is highly competitive, with dominant players enjoying strong brand recognition and distribution networks, making market penetration challenging.

5. Regulatory and Environmental Requirements
Strict environmental and regulatory compliance increases operational complexity and can elevate costs for manufacturing units.

6. Energy Cost Dependence
Steel manufacturing is energy-intensive. Rising fuel and power costs can significantly affect production expenses and erode profit margins.

7. Infrastructure Dependence
Business performance is closely tied to infrastructure and construction activity, which is influenced by central and state government initiatives.

8. Risks of Being an SME Market Listing
Listing on BSE SME brings higher liquidity risks and greater stock volatility compared to main board listings.

Strengths

1. Strong Revenue & Profit Growth
Revenue rose from ₹72.32 Cr to ₹96.25 Cr, while profits increased from ₹3.02 Cr to ₹9.25 Cr, reflecting strong operational execution and market traction.

2. Improving Profit Margins
Margins improved significantly from 4.2% to 9.6%, showcasing efficiency in operations, pricing strategy, and product mix.

3. Growing Market Demand
Urbanization, infrastructure growth, and industrial expansion in India are driving increased demand for steel tubes and pipes across sectors.

4. Diversified Product Portfolio
Offering a range of steel tube and pipe types reduces reliance on any single category and supports multiple revenue streams.

5. Quality Focus
Strong emphasis on quality standards and compliance builds customer loyalty and enables premium pricing strategies.

6. Government Policy Support
Initiatives like Make in India, infrastructure spending, and support for domestic manufacturing create a favorable business environment.

7. Substantial IPO Size
A large ₹540 Cr IPO indicates aggressive expansion plans and adequate capital infusion to meet growth objectives.

8. Growing Net Worth
Net worth increased from around ₹17.8 Cr to ₹38.58 Cr, reflecting retained earnings growth and a strong financial foundation.

How to Apply for Sambhv Steel Tubes Limited IPO?

Step-by-step guide (when IPO opens):

--> Log in to your broker app (Zerodha, Angel One, Groww, etc.)

--> Navigate to the IPO section and select Sambhv Steel Tubes Limited IPO

--> Click "Apply"

--> Enter:

• Lot size (minimum 182 shares)

• Bid price (₹82 or select Cut-Off)

• Your UPI ID

--> Submit the application

--> Approve the UPI mandate in your UPI app (PhonePe, GPay, etc.)

⏰ Important: Mandate must be approved before 5 PM on the same day or before IPO closes.

How to Check Sambhv Steel Tubes IPO Allotment Status?

You can check allotment status through BSE and the registrar portal once the IPO opens.

Check On BSE

1. Visit the BSE official website

2. Navigate to the IPO Allotment Section

3. Select Sambhv Steel Tubes Limited IPO

4. Enter PAN number or application number

5. Submit details to get allotment status

Check On the Registrar Portal

1. Visit Mas Services Limited's website

2. Select IPO allotment status

3. Choose Sambhv Steel Tubes Limited IPO

4. Enter PAN or application number

5. Submit to check status

Company Address

Name : Sambhv Steel Tubes Limited
Address : Office No. 501 to 511, Harshit Corporate, Amanaka, Raipur, Chhattisgarh, 492001
Phone : +91 771 2222 360
Email : cs@sambhv.com
Website : http://www.sambhv.com/

IPO Registrar

Name : Mas Services Limited
Address : T - 34, 2nd Floor, Okhla Industrial Area, Phase - II, New Delhi - 110 020
Phone : 011-26104142
Email : ipo@masserv.com
Website : https://www.masserv.com/opt.asp

Conclusion

The Sambhv Steel Tubes Limited IPO provides exceptionally attractive exposure to the growth story of steel manufacturing and infrastructure startup in India. The company has gone from revenue of ₹72.32 Cr to ₹96.25 Cr and has grown profits (net) to 9.25 Cr (triple of previous years), showing clear efficiency of operations (operating profit margins have increased from 4.2% to 9.6%). With an issue size of ₹540 Cr, they have substantial ambitions to expand, while pricing at ₹82 share with ₹8 GMP (premium of 9.76% is price reasonable.

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Disclaimer : This analysis is for educational purposes only and should not be considered as financial advice. Please consult with your financial advisor before making any investment decisions. Steel sector investments carry market risks and are subject to commodity price fluctuations and economic cycles.

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