Sambhv Steel Tubes IPO: Price band set at ₹77-82 per share; check issue details, key dates, more

Sambhv Steel Tubes IPO: Sambhv Steel has announced the price band for its upcoming initial public offering (IPO). Sambhv Steel IPO price band has been fixed in the range of ₹77 to ₹82 per equity share of the face value of ₹10.  The floor price is 7.7 times the face value of the equity shares, and the cap price is 8.2 times the face value of the equity shares.

Sambhv Steel Tubes IPO's date of subscription is scheduled from Wednesday, June 25, to Friday, June 27. The allocation to anchor investors for Sambhv Steel Tubes IPO is slated to take place on Tuesday, June 24.

Sambhv Steel Tubes 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.

The lot size for Sambhv Steel Tubes IPO is fixed at 182 equity shares and in multiples thereof.

Sambhv Steel Tubes IPO has reserved not more than 50% of the shares in the public issue for qualified institutional buyers (QIB), not less than 15% for non-institutional investors (NII), and not less than 35% of the offer is reserved for retail investors. The employee reservation portion has been allocated equity shares aggregating up to ₹25 million.

The funds raised from the new issue will be used to pay off debt and for various corporate needs.

Tentatively, Sambhv Steel Tubes IPO basis of allotment of shares will be finalised on Monday, June 30, and the company will initiate refunds on Tuesday, July 1, while the shares will be credited to the demat account of allottees on the same day following the refund. Sambhv Steel Tubes' shares are likely to list on the BSE and NSE on Wednesday, July 2.

Nuvama Wealth Management Ltd and Motilal Oswal Investment Advisors Ltd serve as the lead managers for this offering.

About Sambhv Steel

Sambhv Steel Tubes is a producer of electric resistance welded (ERW) steel pipes and hollow structural tubes in India. The company’s manufacturing plant is situated in Village - Sarora, Tehsil Tilda, Raipur (Sarora (Tilda) Facility) in the mineral-rich region of Chhattisgarh.

The iron ore utilised by the company is obtained from the mines of a “Navratna” public sector undertaking (PSU) mining company, while coal is sourced from a “Maharatna” PSU known for one of its largest coal-producing subsidiaries, which operates Asia’s biggest coal mines located just 250 kilometers from our Sarora (Tilda) Facility.

As of March 31, 2024, the company boasts a broad distribution network across India that spans 15 states and one union territory as of December 31, 2024.

The company maintains a significant presence in various Indian states, including Chhattisgarh, Maharashtra, Gujarat, Haryana, Rajasthan, Uttar Pradesh, Madhya Pradesh, and Telangana.

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).

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