Sambhv Steel Tubes IPO gets fully subscribed on Day 2; NII portion booked 3x: Should you apply?

Sambhv Steel Tubes IPO Day 2

The Rs 540-crore IPO of Sambhv Steel Tubes was fully subscribed on its second day of public bidding (June 26). The maiden shares sale of the company has been booked over 1.76 times its offer size on Day 2.

The IPO received bids for nearly 8.65 crore shares, as against the offer size of 4.92 crore shares, according to data on NSE. Non-institutional investors (NII) led the subscription race by booking the portion reserved for them over 3 times. The portion reserved for retail investors was subscribed 1.83 times, and that kept for Qualified institutional buyers (QIB) was booked 61 percent.

Key things to know about Sambhv Steel Tubes IPO:

Sambhv Steel Tubes aims to raise Rs 540 crore from the IPO which comprises a fresh issue of shares worth Rs 440 crore and an offer for sale (OFS) worth Rs 100 crore by promoters. The IPO will remain open for public bidding from June 25 to June 27, with its price band set at Rs 77-82 apiece.

Sambhv Steel Tubes IPO GMP:

Ahead of listing, the unlisted shares of the company were trading with a grey market premium (GMP) of over 12 percent over the IPO price at Rs 92 apiece in the grey market, according to Investorgain. As per IPO Watch, the unlisted shares were trading with 13 percent GMP.

Should you apply for Sambhv Steel Tubes IPO?

Geojit Financial Services issued a ‘Subscribe’ rating for the IPO. “At the upper price band of ₹82, SSTL is valued at a P/E ratio of 44.5x (FY25E annualised), which appears reasonably priced relative to its peers. SSTL is strategically positioned to capitalize on India’s infrastructure boom, driven by initiatives such as the Jal Jeevan Mission and Amrit Bharat scheme. As a backward-integrated player with consistent financial growth, efficient strategic sourcing, and ongoing expansion plans, the company is well-poised for long-term value creation,” Geojit said.

Choice Equity Broking also recommended investors to subscribe to the issue for long term, stating that the valuation seems to be fully priced compared to its peer average. “Backed by fully integrated operations and inhouse manufacturing capabilities, the company is well-positioned to capitalize on this sectoral growth. While there may be short-term pressure on margins, the company’s ongoing expansion and favorable industry dynamics point to strong long-term growth potential,” the brokerage said.

A day before the IPO opened for public bidding, the Chhattisgarh-based company finalised allocation of 1.96 crore equity shares to anchor investors at a price of Rs 82 per share. Whiteoak Capital Mutual Fund, Ashoka India, Motilal Oswal MF, Niveshaay Sambhav Fund, Saraswati Commercial (India), Astrone Capital, Citigroup Global, Nomura Singapore, Societe Generale, and BNP Paribas Financial Markets are amongst the institutional investors participated in the anchor book.

The company that manufactures stainless steel coils with backward integration proposed to utilise fresh issue proceeds mainly to pare debt by Rs 390 crore, and the remainder funds for general corporate purposes. Its total outstanding borrowings were Rs 554.6 crore at the end of April 2025.

Also read: Is Sambhv Steel Tubes making a bold gamble with its IPO?

Promoters hold 71.93 percent stake in Sambhv Steel Tubes that competes with listed entities like APL Apollo Tubes, Hariom Pipes Industries, Hi-Tech Pipes, JTL Industries, Rama Steel Tubes, and Surya Roshni. The remaining 28.07 percent shares are owned by the public shareholders.

Nuvama Wealth Management, and Motilal Oswal Investment Advisors are acting as the book running lead managers for the Sambhv Steel Tubes IPO.

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