Sambhv Steel Tubes Ltd
Complete IPO details, including price band, financials, subscription status, and key insights.
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IPO Snapshot
Key metrics and details at a glance.
Price Band
₹82
Per ShareLot Size
182 Shares
Minimum Investment
₹14,924
Issue Size
₹540 Cr
Face Value
₹10
Per ShareIPO Type
Book Building
Retail Quota
35%
QIB Quota
50%
NII Quota
15%
IPO Timeline
Important dates for your applying strategy.
Subscription Status
Live demand across investor categories.
Track real-time subscription levels:
*Real-time data subject to exchange updates
Sambhv Steel Tubes Ltd
Business model, operations, and market positioning.
Promoter Holding (Pre-Issue)
71.9%
Promoter Holding (Post-Issue)
56.14%
Issue Type
Book Building
ISIN
INE12NJ01018
About the Company
According to the CRISIL Report, we are one of the key manufacturers of electric resistance welded ("ERW") steel pipes and structural tubes (hollow section) in India in terms of installed capacity as of March 31, 2024. According to the CRISIL Report, we are one of the two players in India manufacturing ERW steel pipes and tubes (along with hollow section pipes and tubes) using narrow-width HR coil, as of December 31, 2024. According to the CRISIL Report, we have a market share of approximately 2.00% in domestic ERW pipe segment as of fiscal 2024 (in terms of sales volume).
Industry Overview
According to the CRISIL Report, the demand for domestic steel pipes and tubes is expected to have grown at a CAGR of 5-6% during Fiscals 2019-2025 to rise from 8.8 MTPA in Fiscal 2019 to 12.50-13.50 MTPA in Fiscal 2025, led by government initiatives to augment urban structural infrastructure and to infuse investments in the oil and gas sector. Going forward, domestic steel pipe demand is projected to increase to 18.50-20.50 MTPA in Fiscal 2029 at a 8-9% CAGR during the period between Fiscal 2025 and Fiscal 2029 on a high base.
Company History
Our Company was originally incorporated on April 24, 2017 at Chhattisgarh, India as `Sambhv Sponge Power Private Limited', a private limited company under the Companies Act, 2013 and was granted a certificate of incorporation by the Registrar of Companies, Central Registration Centre on April 25, 2017. Subsequently, the name of our Company was changed to `Sambhv Steel Tubes Private Limited' pursuant to a special resolution adopted by our Shareholders on January 16, 2024 to more accurately reflect the nature of business of our Company, and a fresh certificate of incorporation consequent upon change of name was issued to our Company by the Registrar of Companies, Central Processing Centre on February 22, 2024. Our Company was then converted into a public limited company under the Companies Act, 2013 pursuant to a special resolution adopted by our Shareholders on April 24, 2024, consequent to which, the name of our Company was changed to `Sambhv Steel Tubes Limited' and a fresh certificate of incorporation, consequent upon change of name, was issued to our Company by the Registrar of Companies, Central Processing Centre on July 9, 2024.
Growth Strategy
- Production capacity expansion with focus on valued added products.
- Expanding our distributor network and increasing business share from existing distributors and direct customers.
- Continue to focus on value added products and customization.
- Continue to focus on operational and cost optimization.
- Continue our emphasis on brand building.
Financial Performance
Revenue, profit after tax and total assets across the last 2 reported financial years.
Revenue
Amount in ₹ crore
Profit After Tax (PAT)
Amount in ₹ crore
Total Assets
Amount in ₹ crore
Figures in ₹ crore, on a consolidated basis, as reported for FY25 to FY26.
Objects of the Issue
How the company plans to utilize IPO proceeds.
Use of Proceeds
The funds raised through this IPO will be used for:
Initial public offering of 65,869,291 equity shares of face value of Rs.10 each ("equity shares") of sambhv steel tubes limited (our "company" or the "company" or the "issuer") for cash at a price of Rs. 82 per equity share (including a premium of Rs. 72 per equity share) (the "offer price") aggregating to Rs. 540.00 crores (the "offer") comprising a fresh issue of 53,674,171 equity shares aggregating to Rs. 440.00 crores by the company (the "fresh issue") and an offer for sale of 12,195,120 equity shares of face value of Rs.10 each aggregating to Rs. 100.00 crores comprising an offer for sale of 1,219,512 equity shares aggregating to Rs.10.00 crores by shashank goyal, 1,219,512 equity shares of face value of Rs. 10 each aggregating to Rs. 10.00 crores by rohit goyal (together with shashank goyal, the "promoter selling shareholders"), 4,268,292 equity shares of face value of Rs. 10 each aggregating to Rs. 35.00 crores by kaushlya goyal, 1,219,512 equity shares of face value of Rs. 10 each aggregating to Rs.10.00 crores by harsheet goyal (together with kaushlya goyal, the "promoter group selling shareholders") and 4,268,292 equity shares of face value of Rs.10 each aggregating to Rs. 35.00 crores by rinku goyal (the "other selling shareholder", collectively with promoter selling shareholders and the promoter group selling shareholders, the "selling shareholders", and each individually, as a "selling shareholder" and such offer for sale of equity shares by the selling shareholders, the "offer for sale"). The offer includes a reservation of 320,512 equity shares of face value of Rs. 10 each, aggregating to 2.50 crores (constituting 0.11 % of the post-offer paid-up equity share capital), for subscription by eligible employees (as defined hereinafter) ("employee reservation portion"). such portion did not exceed 5% of the post-offer equity share capital of the company. the offer less the employee reservation portion is hereinafter referred to as the "net offer". The company in consultation with the brlms, offered a discount of 4.88% to the offer price (equivalent of Rs.4 per equity share) to eligible employees bidding in the employee reservation portion ("employee discount"). the offer and the net offer constitutes 22.35% and 22.24%, respectively, of the post-offer paid-up equity share capital of the company. The face value of the equity share is Rs. 10 each and the offer price is 8.2 times the face value of equity shares. A discount of Rs. 4 per equity shares is being offered to eligible employees bidding in the employee reservation portion.
*Subject to approvals and market conditions.
Strengths & Risks
Key competitive advantages and factors to consider before investing.
- Backward integrated facility in India.
- Strategically located manufacturing plants resulting in operational efficiencies.
- Strong process innovation and execution capabilities allowing us to produce value-added products.
- Widespread, well connected distribution network across India.
- Well-positioned to take advantage of the growing demand for quality ERW steel pipes and tubes.
- Under-utilization of its manufacturing capacities and an inability to effectively utilize the company expanded manufacturing capacities could have an adverse effect on its business, future prospects and future financial performance.
- An increase in the cost of or a shortfall in the availability of its key raw materials such as iron ore, coal, iron ore pellets, sponge iron and mild steel scrap from its suppliers could have a material adverse effect on its business, results of operations, profitability and margins, cash flows and financial condition.
- The company depends on certain key suppliers for certain raw materials and have not entered into definitive supply agreements with most of its suppliers. A failures by its suppliers to meet their obligations may affect the availability and cost of raw materials, which may adversely affect its business, results of operations, profitability and margins, cash flows and financial condition. Further volatility in the raw material prices and its inability to pass on the increase in cost of raw materials to the customers may impact its results of operations, profitability and margins.
- Its financing arrangements contain restrictive covenants. This may limit the company ability to pursue its business and limit the company flexibility in planning for, or reacting to, changes in its business or industry including the company plans for expansion and diversification.
- The company derives a substantial portion of its revenue from the sale of ERW pipes and tubes and any loss of sales due to reduction in demand for its products could adversely affect its business, financial condition, results of operations and cash flows. Further, the company inability to successfully diversify its product offerings may adversely affect its growth and negatively impact its profitability.