Sambhv Steel Tubes IPO to Open on June 25: ₹540 Crore Issue, Price Band at ₹77–₹82

Sambhv Steel Tubes Limited, a leading player in the ERW steel pipes and structural tubes segment, is all set to launch its Initial Public Offering (IPO) on June 25, 2025. The public issue, worth ₹540 crore, will remain open for subscription until June 27, 2025. The company has fixed a price band of ₹77 to ₹82 per equity share.

IPO Structure and Use of Funds

The IPO includes a fresh issue of shares worth ₹440 crore, along with an offer for sale (OFS) by promoters valued at ₹100 crore. According to the company, the proceeds from the fresh issue will primarily be used to repay outstanding debts and for general corporate purposes, enhancing financial stability and supporting future growth initiatives.

About Sambhv Steel Tubes

Sambhv Steel Tubes is one of India’s prominent manufacturers of Electric Resistance Welded (ERW) steel pipes and structural hollow sections, known for its strong installed capacity as of March 31, 2024. The company has built a solid reputation for quality and scale in the steel manufacturing industry, catering to diverse infrastructure needs across sectors.

Steel Pipe Industry Outlook

A CRISIL report highlights strong momentum in the steel pipes and tubes market. Domestic demand has grown at a CAGR of 5–6%, rising from 8.8 million tonnes in FY19 to an estimated 12.50–13.50 million tonnes in FY25. This surge is driven by the Indian government’s investments in urban infrastructure and the oil and gas sector.

Looking ahead, CRISIL projects the domestic steel pipe market to further expand to 18.50–20.50 million tonnes per annum by FY29, maintaining a CAGR of 8–9%. Sambhv Steel Tubes is well-positioned to benefit from this projected growth, thanks to its robust manufacturing capabilities.

Allotment Structure and Listing Date

As per regulatory guidelines:

• 50% of the issue is reserved for Qualified Institutional Buyers (QIBs)

• 35% for Retail Investors

• 15% for Non-Institutional Investors (NIIs)

The listing of Sambhv Steel Tubes shares is tentatively scheduled for July 2, 2025, on both the BSE and NSE.

Lead Managers to the Issue

The IPO is being managed by two experienced investment firms:

• Nuvama Wealth Management Ltd

• Motilal Oswal Investment Advisors Ltd

These firms are overseeing the book-building process and institutional participation.

With a sizable IPO and growing demand in the steel infrastructure sector, Sambhv Steel Tubes presents an investment opportunity aligned with India’s industrial and construction growth. Its strategic use of IPO proceeds toward debt reduction and operations signals a financially disciplined and expansion-ready company.

Disclaimer: This article is for educational and informational purposes only. Please consult a financial advisor before making any investment decisions.