Sambhv Steel Tubes Limited is entering the primary markets with its Initial Public Offering (IPO) opening on June 25, 2025. With an issue size of ₹ 540 crore, comprising both fresh issue and offer for sale, this IPO has gained attention among investors. In this article, we will provide a detailed Sambhv Steel Tubes IPO Review, covering company background, strengths, issue details, financials, valuations, risks, GMP and a final conclusion on whether you should invest or avoid.
About Sambhv Steel Tubes Ltd
Sambhv Steel Tubes Limited, incorporated in 2017, is a leading manufacturer of Electric Resistance Welded (ERW) steel pipes and structural tubes. The company operates a backward integrated facility in Chhattisgarh, enabling it to control cost and supply. It caters to a diverse customer base across 15 states and one union territory. Its products include sponge iron, steel blooms, HR coils, and GI pipes.
Competitive Strengths:
- Backward-integrated single-location facility for operational efficiency
- Strong raw material sourcing from reputed PSUs
- Diverse distribution network across India
- Experienced promoters and management with industry know-how
- Solid revenue and PAT growth over the last three years
Sambhv Steel Tubes IPO Issue Details:
- IPO Date: June 25, 2025 to June 27, 2025
- IPO Price Band: ₹ 77 to ₹ 82 per share
- IPO Size: ₹ 540 crore
- Fresh Issue: ₹ 440 crore
- Offer for Sale: ₹ 100 crore
- Lot Size: 182 shares; Minimum investment: ₹ 14,014 (Cut-off: ₹ 14,924)
- Listing: BSE and NSE
- Lead Managers: Nuvama Wealth, Motilal Oswal
- Registrar: KFin Technologies
- Tentative Listing Date: July 2, 2025
Company Financials:
| Financial Year | Revenue (Cr) | EBITDA (Cr) | PAT (Cr) | Net Worth (Cr) | EBITDA Margin | PAT Margin |
|---|---|---|---|---|---|---|
| FY22 | 820.75 | 124.52 | 72.11 | 149.30 | 15.17% | 8.79% |
| FY23 | 939.00 | 117.30 | 60.38 | 210.40 | 12.49% | 6.43% |
| FY24 | 1,289.38 | 159.87 | 82.44 | 438.28 | 12.40% | 6.40% |
| 9MFY25 | 1,018.81 | 106.37 | 40.69 | 478.46 | 10.44% | 4.00% |
Key Valuation Metrics:
- P/E (Post-IPO): 44.54x
- P/BV (Post-IPO): 4.51x
- ROE: 25.42%
- ROCE: 17.66%
- Debt to Equity: 0.80x
Valuation with Peer Comparison: Let us now compare Sambhv Steel Tubes with some of its listed peers based on the latest market data as of June 2025:
| Company | P/E Ratio (TTM) | ROE (%) | EBITDA Margin (%) | |
|---|---|---|---|---|
| Sambhv Steel Tubes (IPO) | 44.54x | 25.42 | 12.43 | |
| APL Apollo Tubes | ~65x | 26.5 | 13.8 | |
| Hi-Tech Pipes | ~26x | 20.1 | 10.2 | |
| JTL Industries | ~30x | 22.3 | 11.5 | |
| Industry Average | ~40.7x | ~23.2 | ~11.5 |
- Highest Valued Peer: APL Apollo Tubes at ~65x, justified by its market leadership and consistent performance.
- Lowest Valued Peer: Hi-Tech Pipes at ~26x, offering value at moderate growth.
- Mid Valued Peer: JTL Industries at ~30x, balancing valuation and returns.
Sambhv Steel Tubes’ post-issue P/E of 44.54x is above the industry average and most of its peers except APL Apollo. However, its higher post-issue P/E indicates aggressive valuation, though mitigated by strong growth potential and profitability. Investors should assess their risk appetite accordingly.
Objects of the Issue:
- Repayment/pre-payment of certain borrowings (₹ 390 Cr)
- General corporate purposes
Sambhv Steel Tubes IPO GMP Today
As per market observers, the Sambhv Steel Tubes IPO GMP (Grey Market Premium) is hovering around ₹ 30–35 per share, indicating healthy listing expectations. However, GMP is unofficial and speculative.
Reasons to Invest:
- Strong financial performance with consistent growth
- Backward integration enhances margins and competitiveness
- Widespread customer and distributor base
- Positive GMP trend signals investor interest
- Focus on value-added steel products
Risk Factors:
- Highly competitive steel sector
- Cyclicality of steel industry can impact revenues
- Moderate debt levels
- Dependency on limited raw material sources
How to Buy Sambhv Steel Tubes IPO:
- Open a Demat and trading account with a SEBI-registered broker
- Apply via ASBA using net banking or UPI-based applications
- Ensure mandate approval before 5 PM on June 27, 2025
Sambhv Steel Tubes IPO – Should You Invest or Avoid?
Sambhv Steel Tubes Limited has shown steady growth in revenue and profits. With an integrated manufacturing setup and strategic sourcing, it is well positioned in the ERW steel pipes market. However, valuations are on the higher side when compared to industry averages and several listed peers. Risk-taking investors can consider applying for medium to long-term gains. Conservative investors may wait for post-listing opportunities.
FAQs on Sambhv Steel Tubes IPO
- What is Sambhv Steel Tubes IPO Date?
- The IPO opens on June 25 and closes on June 27, 2025.
- What is the Sambhv Steel Tubes IPO Price Band?
- The price band is set at ₹ 77 to ₹ 82 per share.
- What is the GMP of Sambhv Steel Tubes IPO?
- GMP is reportedly around ₹ 30–35 per share as of now.
- How can I apply for Sambhv Steel Tubes IPO?
- Through ASBA via net banking or using UPI-based apps linked to your broker.
- What is the lot size and minimum investment?
- One lot = 182 shares. Minimum investment at cut-off price = ₹ 14,924.
- Who are the lead managers for this IPO?
- Nuvama Wealth and Motilal Oswal are the BRLMs.
- Is Sambhv Steel Tubes IPO good or bad for investment?
- It is suitable for investors with a medium to long-term horizon due to its strong financials and growth outlook, but high valuations to be considered before investing.
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