Upcoming IPO: Sambhv Steel Tubes files DRHP with SEBI for IPO worth ₹540 crore

Upcoming SME IPO: Sambhv Steel Tubes Limited filed a draft red herring prospectus (DRHP) with the capital market regulator Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) to raise ₹540 crore. The IPO consists of a fresh issue of equity shares amounting to ₹440 crore and an offer for sale (OFS) by existing shareholders worth ₹100 crore​.

The IPO is structured as a 100% book-built offer, with each equity share having a face value of ₹10. The price band for the IPO has not yet been disclosed but will be decided in consultation with the book-running lead managers. The proceeds from the fresh issue will be utilised for working capital requirements, general corporate purposes, and to support the company’s growth strategies, as per the DRHP.

Sambhv Steel Tubes IPO breakdown

The offer will be divided among different investor categories. Not more than 50% of the IPO will be reserved for qualified institutional buyers (QIBs), at least 15% will be allocated to non-institutional investors (NIIs) and 35% to retail individual investors (RIIs). 

The offer for sale will include equity shares from existing shareholders, with promoters Shashank Goyal and Rohit Goyal each offloading stakes worth ₹10 crore. Promoter group members Kaushlya Goyal and Harsheet Goyal will also offer shares worth ₹10 crore each, while Rinku Goyal will offer shares totalling ₹60 crore.

Incorporated on April 24, 2017, as 'Sambhv Sponge Power Private Limited,' the company later changed its name to 'Sambhv Steel Tubes Private Limited' to better reflect its core business. In 2024, it converted into a public limited company, officially becoming Sambhv Steel Tubes Limited. The registered office is located at Harshit Corporate, Amanaka, Raipur, Chhattisgarh​.

Nuvama Wealth Management Limited and Motilal Oswal Investment Advisors Limited have been appointed as book-running lead managers for the IPO. Meanwhile, KFin Technologies Limited is serving as the registrar to the offer, facilitating the entire bidding process.