The shares of Sambhv Steel Tubes are set to debut on stock markets tomorrow (July 2). The Rs 540-crore IPO of the company saw strong investor interest, garnering 28 times subscription within its three days of public bidding.
Sambhv Steel Tubes GMP:
Ahead of listing, the unlisted shares of the company were trading at Rs 95 apiece in the grey market, according to Investorgain. This marks a grey market premium (GMP) of nearly 16 percent over the IPO price of Rs 82 apiece.
Notably, the GMP cited by the site has remained volatile. Before the IPO opened for public bidding on June 25, the GMP was quoted to be less than 10 percent. Later, it rose to 17 percent. The GMP has now fallen slightly to 15.85 percent.
According to IPO Watch, the unlisted shares were trading with 18 percent GMP over the IPO price at Rs 97 apiece.
Here's what market experts say:
Geojit Financial Services had said that the company seemed to be reasonably priced at the upper limit of the price band. While advising investors to subscribe to the issue, Geojit said, "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."
Choice Equity Broking had 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.
About Sambhv Steel Tubes IPO:
Sambhv Steel Tubes IPO comprised a fresh issue of shares worth Rs 440 crore and an offer for sale (OFS) worth Rs 100 crore by promoters. The IPO was open for public bidding from June 25 to June 27, with its price band set at Rs 77-82 apiece.
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.
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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.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
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