Company Overview
Sambhv Steel Tubes Ltd. is among the key manufacturers of electric resistance welded (ERW) steel pipes and structural tubes in India, with ~2% market share (FY24). It operates a single-location backward integrated facility in Raipur, Chhattisgarh. Its products serve housing, infrastructure, water, agriculture, automobiles, telecom, oil & gas, engineering, solar, fire systems, and conveyor support structures.
As of March 31, 2025, it had 16,98,000 MTPA installed capacity and is commissioning a new greenfield facility in Chhattisgarh (~1.20 MMPTPA). Distribution spans 43 distributors and 700+ dealers across 15 states and 1 union territory.
Key Highlights
Backward integrated facility in Raipur
Strategically located plants with efficiency benefits
Strong innovation and execution capabilities
Widespread dealer and distributor network
Positioned for growing ERW steel demand in India
Track record of healthy financials
Objects of the Issue
Repayment/prepayment of borrowings (₹390 Cr.)
General corporate purposes
Offer for Sale of ₹100 Cr. (proceeds to selling shareholders)
Our View & Risks
Sambhv Steel is well positioned to leverage India’s growing steel and infrastructure demand. Integrated facilities and logistics advantages improve efficiency and margins. Strong distributor and OEM presence strengthen its market position.
Risks: raw material volatility, dependence on key suppliers, under-utilization risks, geographic concentration, competition, regulatory compliance, financing covenants, and cyclical nature of steel industry.
Financial Snapshot & Valuation
FY22–FY24 CAGR: Revenue 25.27% • EBITDA 13.31% • PAT 6.92%. 9MFY25: EBITDA margin 10.47% • PAT margin 4% • ROCE 7.67% • ROE 8.88% • Debt/Equity 1.3x.
IPO priced at P/BV 4.13 (NAV Rs. 19.85) and annualized P/E 40x vs industry avg 39.34x. Fully priced compared to peers (APL Apollo 68x, JTL Industries 10x).
While valuation is stretched, expansion plans and debt reduction strengthen long-term prospects. Suitable for long-term investors in the steel & infra growth theme.
Quick FAQs — Sambhv Steel Tubes IPO
What are the IPO dates and lot size?
Opens June 25, 2025 • Closes June 27, 2025 • Lot size 182 shares.
Where is Sambhv Steel’s facility located?
Backward integrated plant in Raipur, Chhattisgarh + planned greenfield facility.
What is Sushil Finance’s recommendation?
Subscribe for Long Term Horizon.
Brief Financials
| PARTICULARS |
₹ in Million |
| As at Dec. ‘24 |
FY ’24 |
FY ‘23 |
FY ‘22 |
| Total Income |
10,188.06 |
12,893.75 |
9,390.04 |
8,207.53 |
| Total Expenditure |
9,631.02 |
11,786.10 |
8,578.87 |
7,240.78 |
| EBITDA |
1,063.67 |
1,598.72 |
1,173.00 |
1,245.15 |
| Profit before Tax |
557.04 |
1,107.65 |
811.17 |
966.75 |
| Profit after Tax |
406.85 |
824.39 |
603.83 |
721.08 |
| E.P.S. (Diluted) |
1.69* |
3.79 |
3.01 |
3.59 |
| P/E (x) (Diluted) |
- |
22 |
- |
- |
| RONW (%) |
8.88* |
25.42 |
33.57 |
63.65 |
PRICE CHART (@ ₹ 82) (Retail Category)
| LOT SIZE |
| Amount |
| 182 |
14,924 |
| 364 |
29,848 |
| 546 |
44,772 |
| 728 |
59,696 |
| 910 |
74,620 |
| 1,092 |
89,544 |
| 1,274 |
104,468 |
| 1,456 |
119,392 |
| 1,638 |
134,316 |
| 1,820 |
149,240 |
| 2,002 |
164,164 |
| 2,184 |
179,088 |
| 2,366 |
194,012 |
HNI Payment Chart
| Category |
| No. of Shares |
Minimum Bid Lot Amount (Rs.) |
| Small HNI |
2,548 |
208,936 |
| Big HNI |
12,376 |
1,014,832 |
Indicative Time Table
| Tentative Events |
| Indicative Dates |
| Finalisation of Basis of Allotment with the Designated Stock Exchange |
30/6/2025 |
| Initiation of refunds/unblocking ASBA Fund |
1/7/2025 |
| Credit of Equity Shares to demat accounts of Allottees |
1/7/2025 |
| Commencement of trading of the Equity Shares on the Stock Exchanges |
2/7/2025 |
Disclaimer:
The content provided in this blog is for informational and educational purposes only and should not be construed as investment, legal, or tax advice. While Sushil Finance makes reasonable efforts to ensure accuracy and reliability of the information, we do not guarantee its completeness or timeliness. Readers are advised to consult with their financial advisor before making any investment decisions. Sushil Finance shall not be held responsible for any direct or indirect loss arising from use of this content. Investments in securities are subject to market risks. Read all scheme-related documents carefully before investing.
