Sambhv Steel Tubes IPO Day 2: Issue subscribed 1.60 times. Check GMP; should you apply or not?

Sambhv Steel Tubes IPO Day 2 Live: Sambhv Steel Tubes Ltd's initial public offering (IPO) opened for public subscription on Wednesday, June 25, and will close on Friday, June 27. On Tuesday, June 24, the company announced it has secured ₹161.25 crore from anchor investors just one day prior to the opening of its initial share sale for the public.

Sambhv Steel Tubes IPO price band has been established between ₹77 and ₹82 per share, with a face value of ₹10. Sambhv Steel Tubes specified that 50% of the total offer has been allocated for qualified institutional buyers, 35% for retail investors, and the remaining 15% for non-institutional investors.

The expected date for finalising the basis of share allotment for Sambhv Steel Tubes IPO is Monday, June 30. Refunds are planned to be initiated on Tuesday, July 1, and shares will be credited to the demat accounts of successful allottees later that same day after the refunds. The shares of Sambhv Steel Tubes are anticipated to be listed on the BSE and NSE on Wednesday, July 2.

As of March 31, 2024, Sambhv Steel is recognised as one of the leading manufacturers of electric resistance welded (ERW) steel pipes and structural tubes (hollow section) in India in terms of installed capacity.

A report from Crisil indicates that the demand for domestic steel pipes and tubes is projected to grow at a compound annual growth rate (CAGR) of 5-6%, reaching an estimated 12.50-13.50 million tonne per annum (MTPA) in FY25, up from 8.8 MTPA in FY19.

Sambhv Steel Tubes IPO Day 2 Live: Subscription status

Sambhv Steel Tubes IPO was subscribed 1.6 times at the end of the second day of the bidding process, with QIB portion subscribed 61%, NII portion 2.65 times, retail portion 1.73 times and employee quota 1.16 times.

Sambhv Steel Tubes IPO Day 2 Live: Manufacturing facility details

The company has 2 operational manufacturing facilities located at Sarora (Tilda), Raipur, Chhattisgarh and Kuthrel, Raipur, Chhattisgarh. As of March 31, 2024, and March 31, 2025, the company had a total installed capacity of 1,122,400 metric tons per annum (“MTPA”) and 1,698,000 MTPA, respectively of high-quality steel (intermediate and finished) products.

Sambhv Steel Tubes IPO Day 2 Live: Subscription status

Sambhv Steel Tubes IPO was subscribed 1.34 times so far on the second day of the book-building process. Here's how different categories were booked:

• QIB: 61%
• NII: 2.12 times
• Retail: 1.44 times
• Employee: 98%
• Overall: 1.34

Sambhv Steel Tubes IPO Day 2 Live: Industry outlook

According to the CRISIL Report, the demand for domestic steel pipes and tubes is estimated to have grown at a CAGR of 5–6% during Fiscals 2019–2025, rising from 8.8 MTPA in Fiscal 2019 to 12.50–13.50 MTPA in Fiscal 2025. This growth has been driven by government initiatives to enhance urban structural infrastructure and increased investments in the oil and gas sector.

Looking ahead, domestic steel pipe demand is projected to reach 18.50–20.50 MTPA by Fiscal 2029, growing at a CAGR of 8–9% over the period from Fiscal 2025 to Fiscal 2029, despite the high base.

Sambhv Steel Tubes IPO Day 2 Live: About the company

Sambhv Steel Tubes, incorporated in 2017, manufactures Electric Resistance Welded (ERW) steel pipes and structural tubes. With a facility located in Sarora, Chhattisgarh, the company ranks among the top in installed capacity and is one of only two Indian firms using narrow-width HR coils for ERW production. Sambhv also operates in the stainless steel coils segment, serving diverse sectors such as infrastructure, agriculture, automotive, and energy. As of December 31, 2024, its annual sales volume stood at 198,956 metric tonnes.

Sambhv Steel Tubes IPO Day 2 Live: Issue sails through on second day

Led by bidding in the NII and retail category, the Sambhv Steel Tubes IPO was fully subscribed as of 12.15 pm on the second day of the bidding process. NII portion was booked 1.44 times, retail portion was subscribed 1.06 times, QIB portion garnered 61% bids and the employee portion received 85% subscription.

Sambhv Steel Tubes IPO Day 2 Live: Financial snapshot

SSTL’s revenue grew at a 25% CAGR between FY22 and FY24, reaching ₹1,285.8 crore in FY24, driven by deeper distribution penetration and its strategic entry into the ERW steel pipes segment.

In FY24, the company achieved an EBITDA margin of 12.4%, a PAT margin of 6.4%, and a return on equity (RoE) of 18.8%, underscoring its strong operational efficiency and profitability.

Sambhv Steel Tubes IPO Day 2 Live: Review by Geojit Financial

At the upper price band of ₹82, SSTL is valued at a P/E ratio of 44.5x (FY25E annualised), which appears reasonably priced relative to its peers, said Geojit Financial. “SSTL is strategically positioned to capitalise on India’s infrastructure boom, driven by initiatives such as the Jal Jeevan Mission and Amrit Bharat scheme. As a backwards-integrated player with consistent financial growth, efficient strategic sourcing, and ongoing expansion plans, the company is well-positioned for long-term value creation—supporting a 'Subscribe' recommendation for investors,” the brokerage added.

Sambhv Steel Tubes IPO Day 2 Live: Objective of the issue

Sambhv Steel plans to use the funds raised via IPO as follows:

1. Pre-payment or scheduled re-payment of a portion of certain outstanding borrowings availed by the company (expected amount to be utilised ₹390 crore)

2. General corporate purposes

Sambhv Steel Tubes IPO Day 2 Live: Issue booked 75% so far

Sambhv Steel Tubes IPO subscription status stands at 75% so far on the second day of the bidding process. Here's how different quotas were booked:

• QIB: 61%
• NII: 95%
• Retail: 76%
• Employee: 67%

Sambhv Steel Tubes IPO Day 2 Live: Bidding opens for 2nd day

The bidding for Sambhv Steel Tubes IPO kicked off on the second day of the book-building process. At the end of the first day, Sambhv Steel Tubes subscription status was 60%. The retail portion was subscribed 57%, and NII portion has been booked 68%. The Qualified Institutional Buyers (QIBs) portion had received 60% bids. Employee Reserved portion was booked 59%.

Sambhv Steel Tubes IPO Day 2 Live: Review

“We assign “Subscribe” rating to this IPO as company is well-positioned to take advantage of the growing demand for quality ERW steel pipes and tubes with its strong process innovation and execution capabilities. Also, it is available at reasonable valuation as compared to its peers,” said Marwadi Shares and Finance.

Sambhv Steel Tubes IPO Day 2 Live: Sambhv Steel Tubes IPO GMP today 

Sambhv Steel Tubes IPO GMP today is +10. This indicates Sambhv Steel Tubes share price was trading at a premium of ₹10 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Sambhv Steel Tubes share price is indicated at ₹92 apiece, which is 12.20% higher than the IPO price of ₹82.

Analysing the grey market activities from the past 14 sessions, the IPO GMP is showing an upward trend today and is anticipated to have a robust listing. The minimum GMP recorded is ₹0.00, while the maximum GMP stands at ₹11, as per the experts at investorgain.com.

Sambhv Steel Tubes IPO Day 1 Live: Subscription Status 

Sambhv Steel Tubes IPO subscription status is 60% on day 1, so far. The retail portion was subscribed 57%, and NII portion has been booked 68%, Qualified Institutional Buyers (QIBs) portion has received 60% bids. Employee Reserved portion has been booked 59%.

The company has received bids for 2,96,99,306 shares against 4,92,06,100 shares on offer, at 17:00 IST, according to data on BSE.

Sambhv Steel Tubes IPO Day 1 Live: Peers 

As per the red herring prospectus (RHP), the listed peers of the company are APL Apollo Tubes Ltd (with a P/E of 68.52), Hariom Pipes Industries Ltd (with a P/E of 21.15), Hi-Tech Pipes Ltd (with a P/E of 35.52), JTL Industries Ltd (with a P/E of 10.16), Rama Steel Tubes Ltd (with a P/E of 24.27), and Surya Roshni Ltd (with a P/E of 10.98).

Sambhv Steel Tubes IPO Day 1 Live: Key Strengths 

1. A single location backward integrated facility in India
2. Strategically located manufacturing plants resulting in operational efficiencies
3. Strong process innovation and execution capabilities allowing them to produce value-added
4. Wide-spread well connected distribution network across India

Sambhv Steel Tubes IPO Day 1 Live: Canara Bank Securities Views

“While the valuations appear marginally premium, they are backed by the company's unique integration model, improving product mix, and a strong growth outlook. We recommend a SUBSCRIBE rating for long-term investors, considering Sambhv’s compelling fundamentals, cost advantages, and sectoral tailwinds,” said the brokerage. 

Sambhv Steel Tubes IPO Day 1 Live: Sambhv Steel Tubes IPO Subscription Status

Sambhv Steel Tubes IPO subscription status is 6% on day 1, so far. The retail portion was subscribed 10%, and NII portion has been booked 4%, Qualified Institutional Buyers (QIBs) portion is yet to receive bids. Employee Reserved portion has been booked 10%.

The company has received bids for 27,68,766 shares against 4,92,06,100 shares on offer, at 10:33 IST, according to data on BSE.

Sambhv Steel Tubes IPO Day 1 Live: Sambhv Steel Tubes IPO Review

As per SBICAP Securities, the firm is assessed at an annualized EV/EBITDA ratio of 18.2x and a P/E ratio of 44.5x for 9MFY25, calculated based on the maximum price range and post-issue capitalization. Sambhv Steel Tubes is one of the few companies in India equipped with a backward integration facility, which allows it to provide a varied range of premium products in a cost-effective way.

The company has improved its production capabilities to encompass Stainless Steel (SS) Bloom, SS Hot Rolled Coils, SS Cold Rolled Coils, and SS HRAP Coils—products recognized for their significant margin potential.

Given the strong industry momentum, effective backward integration, and an expanding array of value-added products, the company is strategically positioned for continuous growth. The brokerage advise investors to subscribe to the issue at the cut-off price with a long-term investment perspective.

Sambhv Steel Tubes IPO Day 1 Live: IPO Details

The initial public offering comprises a new issue of equity shares estimated at ₹440 crore along with an offer for sale (OFS) of shares amounting to ₹100 crore from the promoters.

Proceeds from the fresh issue will be utilised for payment of debt and general corporate purposes.

Nuvama Wealth Management and Motilal Oswal Investment Advisors are the book-running lead managers to the issue.

Sambhv Steel Tubes IPO Day 1 Live: Sambhv Steel IPO GMP today

Sambhv Steel Tubes IPO GMP today is +5. This indicates Sambhv Steel Tubes share price was trading at a premium of ₹5 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Sambhv Steel Tubes share price is indicated at ₹87 apiece, which is 6.10% higher than the IPO price of ₹82.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.