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

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. 

Here are the key details of the IPO:

• IPO dates: June 25th - 27th, 2025

• Listing date: July 2nd, 2025

• Price band: ₹77 - ₹82 per share

• Total issue size: ₹540 Cr

• Face value: ₹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 

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

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 

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 

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 

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 

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

• Basis of allotment: June 30, 2025

• Refund initiation: July 1, 2025

• Shares credited to demat accounts: July 1, 2025

• Listing date: July 2, 2025 

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.