Sambhv Steel Tubes IPO Day 1 Live: Check GMP, issue details, subscription status. Should you apply or not?
Sambhv Steel Tubes IPO Day 1 Live: Sambhv Steel Tubes Ltd's initial public offering (IPO) is set to open for public subscription on Wednesday, June 25, and will close on Friday, June 27. On Tuesday, June 24, the company announced it has secured ₹ 161.25 crore from anchor investors just one day prior to the opening of its initial share sale for the public.
Sambhv Steel Tubes IPO price band has been established between ₹ 77 and ₹ 82 per share, with a face value of ₹ 10. Sambhv Steel Tubes specified that 50% of the total offer has been allocated for qualified institutional buyers, 35% for retail investors, and the remaining 15% for non-institutional investors.
The expected date for finalising the basis of share allotment for Sambhv Steel Tubes IPO is Monday, June 30. Refunds are planned to be initiated on Tuesday, July 1, and shares will be credited to the demat accounts of successful allottees later that same day after the refunds. The shares of Sambhv Steel Tubes are anticipated to be listed on the BSE and NSE on Wednesday, July 2.
As of March 31, 2024, Sambhv Steel is recognised as one of the leading manufacturers of electric resistance welded (ERW) steel pipes and structural tubes (hollow section) in India in terms of installed capacity.
A report from Crisil indicates that the demand for domestic steel pipes and tubes is projected to grow at a compound annual growth rate (CAGR) of 5-6%, reaching an estimated 12.50-13.50 million tonne per annum (MTPA) in FY25, up from 8.8 MTPA in FY19.
Subscription for the public issue will open at 10:00 IST during Wednesday's deals.
As per SBICAP Securities, the firm is assessed at an annualized EV/EBITDA ratio of 18.2x and a P/E ratio of 44.5x for 9MFY25, calculated based on the maximum price range and post-issue capitalization. Sambhv Steel Tubes is one of the few companies in India equipped with a backward integration facility, which allows it to provide a varied range of premium products in a cost-effective way.
The company has improved its production capabilities to encompass Stainless Steel (SS) Bloom, SS Hot Rolled Coils, SS Cold Rolled Coils, and SS HRAP Coils—products recognized for their significant margin potential.
Given the strong industry momentum, effective backward integration, and an expanding array of value-added products, the company is strategically positioned for continuous growth. The brokerage advise investors to subscribe to the issue at the cut-off price with a long-term investment perspective.
The initial public offering comprises a new issue of equity shares estimated at ₹ 440 crore along with an offer for sale (OFS) of shares amounting to ₹ 100 crore from the promoters.
Proceeds from the fresh issue will be utilised for payment of debt and general corporate purposes.
Nuvama Wealth Management and Motilal Oswal Investment Advisors are the book-running lead managers to the issue.
Sambhv Steel Tubes IPO GMP today is +5. This indicates Sambhv Steel Tubes share price was trading at a premium of ₹ 5 in the grey market, according to investorgain.com.
Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Sambhv Steel Tubes share price is indicated at ₹ 87 apiece, which is 6.10% higher than the IPO price of ₹ 82.
'Grey market premium' indicates investors' readiness to pay more than the issue price.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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