The Rs 540-crore initial public offering (IPO) of Sambhv Steel Tubes will open for public subscription on June 25 and conclude on June 27. The price band has been set at ₹77-82 per share for its issue. Bids can be made for a minimum of 182 Equity Shares and in multiples of 182 Equity Shares thereafter.
The IPO consists of a fresh issue of equity shares valued at ₹440 crore and an offer for sale (OFS) of shares worth ₹100 crore by promoters.
Proceeds from the fresh issue will be utilised to pay debt and general corporate purposes.
While up to 50 per cent of the issue has been reserved for qualified institutional buyers, not less than 15 per cent is reserved for non-institutional investors and up to 35 per cent for retail investors. A discount of ₹ 4 Per Equity share is being offered to eligible employees bidding in the Employee Reservation portion.
Sambhv Steel Tubes on Tuesday said it has mobilised ₹161.25 crore from anchor investors, as part of IPO process. WhiteOak Capital Mutual Fund (MF), Motilal Oswal MF, Nuvama Asset Management, Astorne Capital VCC Arven, Citigroup Global Markets Mauritius, Nomura Singapore, Societe Generale, and BNP Paribas Financial Markets, among others have been allotted shares in the anchor round.
The company allocated over 1.96 crore equity shares to 19 entities at ₹82 an equity share, which is the upper end of the IPO price band.
Sambhv Steel is one of India’s key manufacturers of electric resistance welded (ERW) steel pipes and structural tubes (hollow section) in terms of installed capacity as of March 31, 2024.
According to a Crisil report, the demand for domestic steel pipes and tubes is expected to have grown at a compound annual growth rate (CAGR) of 5-6 per cent to 12.50-13.50 million tonne per annum (MTPA) in FY25 from 8.8 MTPA in FY19.
Government initiatives to augment urban structural infrastructure and infuse investments in the oil and gas sector led to the growth.
Going forward, domestic steel pipe demand is projected to increase to 18.50-20.50 MTPA in FY29 at 8-9 per cent CAGR between FY25 and FY29 on a high base, the report added.
Nuvama Wealth Management and Motilal Oswal Investment Advisors are the issue’s book-running lead managers. Sambhv Steel Tubes is expected to list on the BSE and NSE on July 2.