Sambhv Steel Tubes Limited is a leading Indian manufacturer of electric resistance welded (ERW) steel pipes and structural tubes (hollow sections), with a significant installed production capacity as of March 2024. Headquartered in Raipur, Chhattisgarh, the company benefits from a strategic location near mineral resources. The Sambhv Steel Tubes IPO, scheduled to open from June 25 to June 27, 2025, aims to raise ₹540 crore through a fresh issue of ₹440 crore and an offer for sale of ₹100 crore by promoters, with proceeds targeted at debt repayment and general corporate purposes.
₹15
₹82
₹110.00
Expert Opinions
Market sentiment for the Sambhv Steel Tubes IPO is cautiously optimistic, buoyed by strong government-led infrastructure spending and growing demand from the oil and gas sector, which has propelled steel pipe demand at a healthy CAGR. The company’s strengths include a leading position in ERW steel pipes and structural tubes, a strategic location near mineral resources, and robust installed production capacity as of March 2024. However, risks and challenges remain, such as exposure to raw material price volatility, sector cyclicality, and intense competition from larger and more diversified steel producers.
Valuation analysis for Sambhv Steel Tubes IPO for FY2024 highlights impressive profitability metrics: a Return on Equity (ROE) of 25.42%, ROCE of 17.66%, and EBITDA margin of 12.43%, reflecting efficient operations and strong capital allocation. The long-term investment perspective is positive, underpinned by projected sector growth and the company’s expansion plans, but investors should remain mindful of macroeconomic and industry risks that could impact future performance.
Investor Considerations
Investors considering the Sambhv Steel Tubes IPO should note the company’s strong performance and fundamentals, with FY2024 revenue of ₹1,289.38 crore and profit after tax (PAT) of ₹82.44 crore, reflecting consistent growth and operational efficiency as the company expands its production capacity and distribution network across 15 states. The sector outlook is positive, driven by robust infrastructure spending, urbanization, and steady demand from construction, oil and gas, and manufacturing sectors, with steel pipe demand expected to grow at an 8–9% CAGR through FY29.
The Sambhv Steel Tubes IPO valuation for FY2024 is based on a Price to Book Value of 4.51, PAT margin of 6.41%, and a debt/equity ratio of 0.80, indicating reasonable leverage and premium pricing. Growth prospects are supported by ongoing capacity expansion, enhanced operational efficiencies, and plans to further reduce debt. Key risk factors include industry cyclicality, raw material price volatility, and intense competition. For short-term investors, market sentiment and listing performance may be relevant, while long-term investors can benefit from sector tailwinds and the company’s expansion strategy, provided risks are managed effectively.
| Date | GMP | Trend |
|---|---|---|
| 29 Jun 2025 10.52 | ₹15 | --- |
| 28 Jun 2025 16.01 | ₹15 | Up |
| 27 Jun 2025 13.18 | ₹10 | --- |
| 26 Jun 2025 11.20 | ₹10 | --- |
| 25 Jun 2025 14.35 | ₹10 | --- |
| 24 Jun 2025 11.07 | ₹10 | --- |
| 23 Jun 2025 10.38 | ₹10 | --- |
| 21 Jun 2025 10.51 | ₹10 | --- |
| 20 Jun 2025 19.52 | ₹10 | Up |
| 18 Jun 2025 10.45 | ₹00 | --- |
| 17 Jun 2025 18.15 | ₹00 | --- |
| 16 Jun 2025 11.18 | ₹00 | Up |
| 14 Jun 2025 12.10 | --- |
FAQs
The Grey Market Premium showed low accuracy in predicting Supertech EV IPO’s listing performance. With a final GMP of ₹15, it projected an expected premium of 18.29% over the issue price of ₹82. However, the stock listed much higher at ₹110, delivering a strong gain of 34.15%. This resulted in a prediction error of 15.86%, where the GMP correctly indicated a positive listing but significantly underestimated the actual gains, reflecting weak reliability in this instance.
Sambhv Steel Tubes IPO Current GMP is ₹15.
Sambhv Steel Tubes IPO Expected Returns is 18.29%.
Sambhv Steel Tubes IPO estimated listing price is ₹97.