Sambhv Steel Tubes IPO: Check IPO Date, Live Subscription and Key Details
Sambhv Steel Tubes is a key manufacturer of electric resistance welded (ERW) steel pipes and structural tubes (hollow sections) in India. The company operates a unique, single-location, backward-integrated manufacturing facility in Sarora, Tilda, Raipur, Chhattisgarh, which spans the entire value chain from raw materials to finished products. This integration allows for in-house production of sponge iron, blooms/slabs, narrow-width HR coils, and GI pipes, enhancing cost efficiency, quality control, and reducing delivery timelines.
Min Investment
₹14924
Price Range
₹77.00-82.00
Issue Size
₹540.00 Cr
IPO Type
Mainboard
Key Metrics
Check Live GMP
Face Value
₹10
EPS
1.84
P/E Ratio
44.54
RoNW
25.42%
ROE
25.42%
Debt to Equity
0.8
Timeline
IPO Opens
25 Jun
IPO Closes
27 Jun
Allotment
30 Jun
Listing
2 Jul
IPO Objectives
- Pre-payment or scheduled re-payment of a portion of certain outstanding borrowings availed by the Company.
- General corporate purposes.
Strengths
- Well-positioned in the growing steel pipes and tubes manufacturing market, driven by increasing infrastructure development in India.
- Unique single-location backward-integrated manufacturing facility, covering the entire value chain from raw materials to finished products, ensuring superior quality, cost-efficiency, and consistency.
- Strategically located manufacturing facility in Raipur, Chhattisgarh, providing proximity to key raw material suppliers like iron ore and coal (from Navratna and Maharatna PSUs), leading to reduced logistics costs and stable supply.
- Widespread and well-connected distribution network across 15 states and one union territory with 33 distributors (total 43 including branches) serving over 700 dealers and OEMs, facilitating extensive market reach.
- Strong process innovation and execution capabilities, enabling the production of value-added products like narrow-width HR coils and stainless steel blooms/slabs using advanced processes (AOD, LRF).
Weaknesses
- Revenue concentration: While the distribution network is widespread, a major portion of sales value in the nine months ended December 2024 was from North and West India, making operations susceptible to regional factors.
- Dependency on certain key distributors and direct customers: The company largely depends on its distributors and direct customers (top 10 distributors contributed nearly 52% of revenue for 9M FY25), and the loss of any key client could severely impact operations.
- Cyclical nature of the steel industry: The steel sector is inherently cyclical, and the company's profitability is sensitive to fluctuations in market demand, global economic conditions, and volatility in raw material prices (iron ore and coal).
- Exposure to raw material price volatility: Reliance on a limited number of suppliers for key raw materials without formal long-term agreements exposes the company to supply shortages and price fluctuations.
- High debt levels: While the IPO aims to repay a portion of borrowings, the company has significant total borrowings (₹619.15 crore as of Dec 31, 2024), and a debt-to-equity ratio of 0.80 (FY24), indicating reliance on debt which could increase interest obligations.
Financial Performance
| Period Ended | 31 Dec 2024 | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
|---|---|---|---|---|
| Assets (₹ Cr.) | 1411.82 | 940.13 | 552.14 | 458.51 |
| Revenue (₹ Cr.) | 1018.81 | 1289.38 | 939 | 820.75 |
| PAT (₹ Cr.) | 40.69 | 82.44 | 60.38 | 72.11 |
| Net Worth (₹ Cr.) | 478.46 | 438.28 | 210.4 | 149.3 |
Peer Comparison
| Company | P/B Ratio | P/E Ratio | RONW (%) | Net Worth (₹ Cr.) |
|---|---|---|---|---|
| Sambhv Steel Tubes | 4.51 | 44.54 | 25.42 | 438.28 |
| Apl Apollo Tubes Ltd. | 11.83 | 65.79 | 17.99 | 3605 |
| Hariom Pipe Industries Limited | 2.11 | 19.56 | 10.78 | 464 |
| Hi-Tech Pipes Limited | 1.63 | 28.14 | 5.8 | 576 |
Subscription Details
Daily Bids Status
| Date | Day 1 | Day 2 | Day 3 |
|---|---|---|---|
| QIB | 0.16x | 0.17x | 0.17x |
| NII | 0.73x | 3.32x | 7.81x |
| S-HNI | 0.77x | 3.88x | 7.93x |
| B-HNI | 0.41x | 2.64x | 7.27x |
| RII | 0.61x | 1.97x | 3.19x |
| EMP | 0.63x | 1.62x | 2.09x |
| Total | 0.41x | 1.27x | 2.37x |
Overall Subscription Statistics
| Category | Shares Offered | Shares Bid | Bid Amount (₹ Cr) |
|---|---|---|---|
| QIB | 3,27,74,390 | 55,22,608 | 45.29 |
| NII | 98,32,917 | 7,68,34,394 | 630.04 |
| Small NII | 32,77,439 | 2,60,05,798 | 213.25 |
| Big NII | 65,54,878 | 4,76,62,888 | 390.84 |
| RII | 2,29,42,073 | 7,31,29,784 | 599.66 |
| EMP | 3,20,513 | 6,71,398 | 5.51 |
| Total | 6,58,69,293 | 15,61,58,184 | 1,280.50 |
Company Details
- Office No. 501 to 511, Harshit Corporate, Amanaka, Raipur, Chhattisgarh-492001, India
- +91 771 2222 360
- cs@sambhv.com
- http://www.sambhv.com/
Registrar Details
- Kfin Technologies Limited
- 04067162222, 04079611000
- sstl.ipo@kfintech.com
- https://kosmic.kfintech.com/ipostatus/