# Sambhv Steel Tubes Limited IPO: 10 Key Things to Know Before Investing

> Sambhv Steel Tubes Limited, a fast-growing manufacturer of ERW steel pipes and structural tubes, is all set to launch its INR 540 crore Initial Public Offering (IPO) from 25 June to 27 June 2025. With a strategically located backward-integrated plant and strong presence across India, the company presents an interesting opportunity in the infrastructure and construction sector.  Here are the 10 key things you should know before investing in the Sambhv Steel Tubes Limited IPO:

- **URL**: https://www.arihantplus.com/blogs/ipo/sambhv-steel-tubes-ipo-key-points-investment-checklist
- **Category**: IPO
- **Author**: [Arihant Team](https://www.arihantplus.com/author/arihant-team)
- **Published**: 2025-06-23
- **Updated**: 2026-11-13
- **Reading time**: 4 minutes read
- **Tags**: Sambhv IPO details, June 2025 IPOs, IPO checklist 2025

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## 1. What makes Sambhv Steel Tubes a good opportunity?

Sambhv Steel Tubes Limited is uniquely positioned as India's only single-location backward-integrated ERW pipe manufacturer, with raw material sourcing advantages. The company's manufacturing unit in Raipur is near Asia's largest coal mines and is supported by a strong network across 15 states and 1 union territory.

It benefits from a growing demand for high-quality steel tubes across infrastructure, housing, and industrial sectors, and has a proven ability to deliver value-added products at scale.

## 2. What are the IPO dates, price band, and issue size?

Here are the key details of the IPO:

* **IPO dates:** June 25th - 27th, 2025

* **Listing date:** July 2nd, 2025

* **Price band:** INR 77 - INR 82 per share

* **Total issue size:** INR 540 Cr

* **Face value:** INR 10 per share

* **Listing Exchange:** BSE, NSE

* **Lot Size:** 182 Shares

* **Promoters:** Brijlal Goyal, Suresh Kumar Goyal, Vikas Kumar Goyal, Sheetal Goyal, Shashank Goyal and Rohit Goyal

## 3. What is the minimum investment for the IPO?

The minimum investment required to apply for the Sambhv Steel Tubes IPO is INR 14,014, based on the lot size of 182 shares at the lower price band of INR 77 per share. To improve your chances of allotment, applying at the upper band is advisable, requiring INR 14,924 (182 shares at INR 82 per share).

## 4. What does the company do?

Incorporated in 2017, Sambhv Steel Tubes Limited manufactures electric resistance welded (ERW) steel pipes and hollow structural tubes used in diverse sectors including construction, infrastructure, and industrial applications.

* **Manufacturing Location:** Raipur, Chhattisgarh - a mineral-rich state

* **Key Inputs:** Iron ore from Navratna PSU mines and coal from Maharatna PSU mines

* **Distribution Network:** Present across 15 states and 1 UT

* **Sales Force:** 23-member team as of July 2024

## 5. What is the objective of the IPO?

The key objectives of the IPO are:

* **To prepay or repay certain outstanding borrowings** to improve financial health
* **To meet general corporate purposes**, including working capital and expansion needs

## 6. How much is reserved for retail and other investors?

While the exact allocation details are not disclosed, a typical IPO structure would include:

* **QIB Shares Offered (QIBs):** Up to 50% of the Issue

* **Retail Shares Offered:** At least 35% of the Issue

* **NII (HNI) Shares Offered:** Up to 15% of the Issue

## 7. What are the key strengths and risks?

**Strengths:**

* India's only backward-integrated ERW pipe manufacturer at a single location

* Proximity to raw materials ensures cost efficiency

* Strong innovation in value-added steel products

* Wide distribution reach across key Indian markets

* Well-positioned to leverage growth in infrastructure and construction sectors

**Risks:**

* Underutilisation of newly expanded capacity could impact profitability

* Volatility in raw material costs like coal and iron ore may affect margins

* No long-term contracts with key suppliers could lead to supply uncertainties

* Restrictive covenants in loan agreements may limit business flexibility

* High dependence on ERW pipes - lack of diversification poses a business risk

## 8. What is the financial performance of Sambhv Steel Tubes?

The company has delivered strong top-line performance with a steady rise in revenues and profits (INR Cr): 

| **Period Ended**     | **31 Dec 2024** | **31 Mar 2024** | **31 Mar 2023** |
| -------------------- | --------------- | --------------- | --------------- |
| **Assets**           | INR 1,411.82       | INR 940.13         | INR 552.14         |
| **Revenue**          | INR 1,018.81       | INR 1,289.38       | INR 939.00         |
| **Profit After Tax** | INR 40.69          | INR 82.44          | INR 60.38          |

## 9. What is the allotment and listing timeline?

* **Basis of allotment:** June 30, 2025

* **Refund initiation:** July 1, 2025

* **Shares credited to demat accounts:** July 1, 2025

* **Listing date:** July 2, 2025

## 10. Should you invest in Sambhv Steel Tubes Limited IPO?

Sambhv Steel Tubes Limited offers an attractive investment opportunity in the booming infrastructure and steel manufacturing sector. Its backward-integrated model, strategic location, and growing national presence are key positives.

However, potential investors should weigh the risks such as supplier dependency, raw material price volatility, and capacity utilisation challenges before applying.

Evaluate your financial goals and risk appetite before making any investment decision.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Please consult your financial advisor before investing.

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*Investments in securities markets are subject to market risks. Read all the related documents carefully before investing. This content is for educational purposes only and does not constitute investment advice. Arihant Capital Markets Ltd. is a SEBI-registered stock broker.*