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The GMP of the Sambhv Steel Tubes IPO currently stands at 9.76%, indicating mild listing gains.
Sambhv Steel Tubes Ltd is set to launch its initial public offering (IPO) on Wednesday, June 25.
Sambhv Steel Tubes IPO: Sambhv Steel Tubes Ltd is set to launch its initial public offering (IPO) on Wednesday, June 25, 2025, with the public issue aiming to raise Rs 540 crore, according to the Red Herring Prospectus filed by the company. The IPO will remain be closed on Friday, June 27, while the anchor investor window will open on Tuesday, June 24.
The IPO consists of a fresh issue of equity shares worth Rs 440 crore and an offer for sale (OFS) of Rs 100 crore by the company’s promoter and promoter group shareholders.
Sambhv Steel Tubes IPO: Price Band and Lot Size
The price band has been fixed at Rs 77 to Rs 82 per equity share of face value Rs 10 each. Investors can bid for a minimum of 182 equity shares and in multiples thereof. A discount of Rs 4 per equity share is being offered to eligible employees bidding in the reserved employee portion.
Sambhv Steel Tubes IPO GMP Today
According to market observers, the GMP of the IPO currently stands at 9.76%, indicating mild listing gains.
The GMP is based on market sentiments and keeps changing. ‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
Sambhv Steel Tubes IPO Proceeds
As per the RHP, Sambhv Steel intends to use the net proceeds from the fresh issue primarily for pre-payment or scheduled repayment of certain outstanding borrowings, and the remaining amount will go towards general corporate purposes.
Sambhv Steel Tubes IPO: Breakdown of Offer for Sale
The Rs 100-crore OFS component includes shares offloaded by the following stakeholders:
- Rs 10 crore by Shashank Goyal (Promoter Selling Shareholder)
- Rs 10 crore by Rohit Goyal (Promoter Selling Shareholder)
- Rs 35 crore by Kaushlya Goyal (Promoter Group Selling Shareholder)
- Rs 10 crore by Harsheet Goyal (Promoter Group Selling Shareholder)
- Rs 35 crore by Rinku Goyal (Other Selling Shareholder)
Sambhv Steel Tubes IPO Listing and Lead Managers
The equity shares will be listed on both the BSE and the National Stock Exchange (NSE) on July 2.
Nuvama Wealth Management Limited and Motilal Oswal Investment Advisors Limited are the Book Running Lead Managers (BRLMs) to the issue.
Category-Wise Allocation
The IPO is being offered through the book-building process in line with SEBI’s Issue of Capital and Disclosure Requirements (ICDR) Regulations:
Not more than 50% of the net offer will be allocated to qualified institutional buyers (QIBs). Up to 60% of the QIB portion may be allocated to Anchor Investors, with one-third reserved for domestic mutual funds. A minimum of 15% is reserved for Non-Institutional Bidders (NIIs). At least 35% is reserved for retail investors.
A portion of the shares is also reserved for eligible employees, who will benefit from the Rs 4 discount.
Sambhv Steel Tubes is 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 a Crisil report, the demand for domestic steel pipes and tubes is expected to have grown at a compound annual growth rate (CAGR) of 5-6 per cent to 12.50-13.50 million tonnes per annum (MTPA) in FY25 from 8.8 MTPA in FY19.
The growth was 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 FY29 at 8-9 per cent CAGR between FY25 and FY29 on a high base, the report added.
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to markets, economy and companies. Having a decade of experience in financial journalism, Haris has been previously asso…Read More
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to markets, economy and companies. Having a decade of experience in financial journalism, Haris has been previously asso… Read More
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