Sambhv steel tubes IPO: The shares of possible steel tubes are set to list the stock markets on July 2. The company’s ₹ 540 crore IPO received a strong response from investors, and it was subscribed to 28 times in three days of the bid. The Sambhv Steel Tubes IPO issued new shares of ₹ 440 crore and included a sale of ₹ 100 crore by promoters. The IPO was opened for public bids from 25 June to 27 June, whose price band was fixed ₹ 77-82 per share.
A day before the IPO opened for the public, Chhattisgarh -based company finalized the allocation of 1.96 crore equity shares to anchor investors at a price of ₹ 82 per share. Whiteok Capital Mutual Fund, Ashoka India, Motilal Oswal MF, investment possible funds, Saraswati Commercial (India), Astron Capital, Citigroup Global, Nomura Singapore, Society General and BNP Paraiba Financial Markets are among the institutional investors participating in the anchor book. Nuwama is working as a book running lead manager for wealth management and Motilal Oswal Investment Advisors Sambhv Steel Tubes IPO.
What will the company do for the money received from IPO?
Possible steel tubes form stainless steel coil with backward integration. The company will use ₹ 390 crore from the IPO to pay loans and the remaining amount will be used for general corporate purposes. Let us know that by the end of April 2025, its total outstanding debt was ₹ 554.6 crore. Promoters hold 71.93 percent stake in Sambhv Steel Tubes, which compete with listed companies like APL APOLLO TUBES, Hariom Pipes Industries, Hi-Tech Pips, JTL Industries, Rama Steel Tubes and Surya Roshni. The remaining 28.07 percent shares are with public shareholders.
What is the opinion of market experts?
Regarding the possible steel tubes’ IPOs, the financial services, Geojit, said that the company appears to be at the fair price on the upper border of the price band. Advising investors to subscribe to this issue, Gejjated said, ‘SSTL is strategically located to take advantage of India’s infrastructure boom inspired by initiatives like Jal Life Mission and Amrit Bharat Yojana. As a backward-integrated player with frequent financial development, efficient strategic sourcing and ongoing expansion plans, the company is well prepared for long-term price construction. ‘
Choice Equity Broking also recommended investors to subscribe to this issue for a long time. Brokerage said, ‘A company equipped with fully integrated operations and inhouse manufacturing capabilities is in good condition to avail the development in its industry.
Sambhv Steel Tubes IPO’s latest gmp
According to Investorgen, before the listing, the company’s unlisted shares were trading at ₹ 95 per share in the gray market. This indicates a gray market premium (GMP) of about 16 percent at an IPO price of ₹ 82 per share. Let us know that before opening the bid for the IPO on 25 June, GMP was reported to be less than 10 percent, which later increased to 17 percent. However, GMP has now fallen slightly to 15.85 percent. According to the IPO Watch, the company’s unlisted stocks were trading with 1 i.e. 8 percent GMP at ₹ 97 per share at IPO price.