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News Topical, Digital Desk : Sambhav Steel Tubes Limited is going to launch its Initial Public Offering (IPO) on 25 June 2025, which will remain open for subscription till 27 June 2025. The company wants to raise a total of Rs 540 crore through this IPO. The company will use the amount raised to repay some of its old debt and meet general corporate needs.
Fresh Issue and Offer for Sale
The total issue in the IPO is Rs 540 crore, out of which Rs 440 crore will be in the form of fresh issue i.e. new shares of the company will be issued. At the same time, a part of Rs 100 crore will come under Offer for Sale (OFS), in which existing investors will sell their shares. The fresh issue includes 5.37 crore new shares, and OFS includes 1.22 crore shares.
Price Band, Lot Size and Employee Discount
The price band of this IPO has been kept between Rs 77 and Rs 82 per share. Investors will have to buy a lot of at least 182 shares and further orders will also be in multiples of this. The face value of each share is Rs 10. The company is also giving a discount of Rs 4 per share to its employees.
Market cap and investment structure
After the IPO, the market capital of the company can be between Rs 2,296 crore and Rs 2,416 crore, which will depend on the price of the share. Talking about reservation for investors, 50 percent of the share is reserved for qualified institutional buyers (QIB), 15 percent for non-institutional investors (NII) and 35 percent for retail investors.
Company's income and profits
Sambhav Steel Tubes has consistently increased its income over the past few years. The company's revenue in FY22 was Rs 819 crore, which increased to Rs 1,286 crore in FY24. In the first nine months of FY25, the company has earned Rs 1,016 crore. Talking about gross profit, it has increased from Rs 200 crore in FY22 to Rs 366 crore in FY24, and the margin has also increased from 24.4 per cent to 28.4 per cent.
EBITDA and Net Profit Performance
Although the company's EBITDA fell slightly from Rs 125 crore in FY22 to Rs 117 crore in FY23, it increased to Rs 160 crore in FY24. EBITDA stood at Rs 106 crore in the nine months of FY25. At the same time, EBITDA margin has come down to 10.5 per cent, which could be a matter of concern.
Talking about net profit i.e. PAT, it was Rs 72 crore in FY22, Rs 60 crore in FY23 and Rs 82 crore in FY24. The company's PAT in the 9 months of FY25 is Rs 41 crore.
What does the company make?
Sambhav Steel Tubes is one of the leading Indian companies engaged in the manufacture of Electric Resistance Welded (ERW) steel pipes and structural tubes. The company has the facility of backward integration whereby it in-house manufactures mid-level items like sponge iron, HR/CR/GP coils which are later converted into finished products.
Its pipes and tubes are used in many industries like housing, infrastructure, agriculture, water transport, oil and gas, engineering, solar energy and fire fighting systems.
Who is handling this IPO?
The Book Running Lead Managers (BRLMs) for this IPO are:
Nuvama Wealth Management
Motilal Oswal Investment Advisors
KFin Technologies Ltd has been appointed as the registrar of the IPO, which will look after share allotment and investor related work.
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