Earlier, the company mopped up ₹161.25 crore from anchor investors. The IPO has a price range of ₹77-82 per share and will conclude on June 27.
Sambhv Steel Tubes
received 1.09 times subscription on the second day of bidding on Thursday. The IPO received bids for 5.38 crore shares, as against 4.92 crore shares on offer, according to data available with the NSE.
The Non Institutional Investors (NII) portion fetched 1.62 times subscription, while the Retail Individual Investors (RIIs) category got subscribed 1.15 times. The quota for Qualified Institutional Buyers (QIBs) received 61% subscription.
According to the platforms tracking the grey market premium activities, the shares of Sambhv Steel Tubes are commanding a grey market premium of over 12%. Investorgain quoted a GMP of ₹10 for the shares of the company, indicating a list gain of 12.20%.
Analysts have mostly given a ‘Subscribe’ rating to the IPO, considering the company recorded steady growth in its top and bottom lines for the last three fiscals. Its major expansion plans have gone on stream and will bring additions to its revenue and profits in coming years.
The IPO is a mix of fresh issue of equity shares valued at ₹440 crore and an offer for sale (OFS) of shares worth ₹100 crore by promoters.
Proceeds from the fresh issue will be utilised for payment of debt and general corporate purposes.
Sambhv Steel 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.
In FY24, Sambhv posted a revenue of ₹1,285.76 crore, up 37% on-year. Profit came in at ₹82.44 crore, with EBITDA margins at 12.40%.
The company’s net worth doubled from ₹210.4 crore in FY23 to ₹438.28 crore in FY24, while borrowings also surged to ₹619.14 crore, a factor the issue aims to correct.
Nuvama Wealth Management, Motilal Oswal Investment Advisors are the book running lead managers of the Sambhv Steel Tubes IPO, while Kfin Technologies is the registrar.
The allotment for the Sambhv Steel Tubes IPO is expected to be finalised on June 30, while the shares will be listed on BSE, NSE with a tentative listing date fixed July 2, 2025.
