IPO Opens: June 25, 2025 (Wednesday); Closes: June 27, 2025 (Friday).
Price Band: ₹77 – ₹82 per share (Face Value ₹10).
Issue Size: ₹540.00 crore (Fresh Issue ~₹440 crore; Offer for Sale ~₹100 crore).
Lot Size: 182 shares; Retail Reservation: ≥35% of Net Issue, QIB: 50%, Non-Institutional (HNI): 15%.
Employee Reservation: ₹25 million worth of shares.
Lead Managers: Nuvama Wealth Management Ltd. and Motilal Oswal Investment Advisors Ltd.; Registrar: KFin Technologies Ltd.
About the Company
Incorporated in 2017, Sambhv Steel Tubes Ltd is a Chhattisgarh-based integrated steel products manufacturer.
Products include ERW pipes, hollow sections, GI/GP pipes, HRAP/CR coils, and steel door frames.
Main plants in Raipur, Chhattisgarh: Sarora (Tilda) and Kuthrel; expansion planned at Kesda.
Total installed capacity ~1.7 MTPA as of FY25; ~3.1 MTPA by FY27.
Employees: ~1,600+; Promoters: Goyal family.
Distribution across 15 states and 1 UT via 43 distributors and 700+ dealers.
Financials: Sambhv Steel Tubes IPO
Here is the concise profit and loss statement with important rows, in Rs. crore, without any references:
Particulars
As at Dec. 31st, 2024 (Consolidated)
As at March 31, 2024 (Standalone)
As at March 31, 2023 (Standalone)
As at March 31, 2022 (Standalone)
Revenue from operations
1,016.09
1,285.76
937.22
819.35
Total income
1,018.81
1,289.38
939.00
820.75
EBITDA
106.37
159.87
117.30
124.52
EBITDA Margin (%)
10.47
12.43
12.52
15.20
Profit before tax
55.70
110.77
81.12
96.68
Profit for the period/year
40.69
82.44
60.38
72.11
PAT Margin (%)
4.00
6.41
6.44
8.80
EPS – Diluted (₹)
1.69
3.79
3.01
3.59
*FY25 data is for 9 months (Jul-Mar), unaudited consolidated figures.
Revenue CAGR ~25%, PAT CAGR ~7% (FY22-24).
EBITDA margin ~12.5% in FY24; ROCE ~17-20%.
Anchors & Allotment: Sambhv Steel Tubes IPO
Sambhv Steel Tubes allocated shares to 19 anchor investors ahead of its IPO, with the top 20 including a mix of leading domestic and global institutions. WhiteOak Capital Funds received the largest share, accounting for nearly 27% of the anchor allocation. Motilal Oswal Large Cap Fund was allotted 18.45%, while Ashoka India Equity Investment Trust received 10.46%. Other significant participants included Niveshaay Sambhav Fund, Saraswati Commercial (India), Astrone Capital VCC Arven, Citigroup Global Markets Mauritius, Nomura Singapore, Societe Generale, and BNP Paribas Financial Markets, each receiving between 2% and 7% of the total anchor book. Nuvama Asset Management, Steadview Capital, and Tata Investment Corporation were also part of the anchor list, with allocations ranging from 1% to 4%. The remaining allocation was distributed among Edelweiss Mutual Fund, Copthall Mauritius Investment, Eastspring Investments, Union Mutual Fund, and Clarus Capital, with each receiving less than 1.5%.
Mutual Funds: ~34% of anchor portion.
Salient Points: Sambhv Steel Tubes IPO
Net proceeds to repay debt (~₹390 Cr), WC, and general corporate purposes.
EBITDA per ton of Rs. 7,160 much higher than peer APL Apollo ( Rs. 3900)
ERW pipes and tubes accounting for 73% of revenue.
In Q3FY25, it has expanded ERW pipes capacity to 3.5 lakh MTPA . Further added a new plant for 1.6 lakh MTPA of galvanized pipes (GP) and stainless-steel coils (SS coils).
Peers
Companies/ Rs. Cr
Revenue
EBITDA Margin
PAT Margin
PE
ROCE
Mcap/sale
D/E Ratio
Sambhv Steel Tubes(FY24)
1,285.75
12.43%
6.41%
29.31
17.66%
1.88
0.79
APL Apollo Tubes(FY25)
20,690
5.80%
3.66%
65.8
22.8%
2.41
0.15
HariomPipes Industries (FY25)
1,357
12.90%
4.55%
20
14.1%
0.91
0.7
Hi-Tech Pipes (FY25)
3,068
5.22%
2.38%
28.5
11.7%
0.68
0.14
Surya Roshni (FY25)
7,435 C
7.79%
4.69%
1.01
20.9%
7,277 Cr.
0.01
GMP
GMP ~₹10 as per SM(as of June 26, 2025).
Management Commentary
CEO Vikas Goyal emphasized cost efficiency from backward integration and plans to scale exports post-Kuthrel plant commissioning.
Opinion
I am likely to apply in Sambhv Steel Tubes IPO.
Listing Gains: Small to Moderate; Based on FY25 annualized earnings the asking price is at a P/E of 44.6. Based on FY24 earnings, the P/E stands at 29.3, GMP indicates slight upside.
Long Term: Positive. Integrated model and infra demand support long-term growth. Premium valuations limit upside.
Margins are down in 9mFY25. This should improve as their finished goods capacity has doubled to 5.1 lakh MTPA, as of 31.12.24. IPO proceeds will retire the debt used for this expansion.
EBITDA per ton is higher than peers due to backward integration
This post is exploratory and educational purposes only.
Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.
