Sambhv Steel Tubes on Friday set a price band of ₹77-82 per share for its upcoming ₹540-crore initial public offering (IPO).
The initial share sale will open for public subscription on June 25 and conclude on June 27, the company said.
The IPO is a mix 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 for payment of debt and general corporate purposes.
Sambhv Steel Tubes is one of the key manufacturers of electric resistance welded (ERW) steel pipes and structural tubes (hollow section) in India 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 tonnes per annum (MTPA) in FY25 from 8.8 MTPA in FY19.
The growth was led by government initiatives to augment urban structural infrastructure and to infuse investments in the oil and gas sector.
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.
Sambhv Steel Tubes announced that half of the offer size has been reserved for qualified institutional buyers, 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors.
Nuvama Wealth Management Ltd and Motilal Oswal Investment Advisors Ltd are the book-running lead managers to the issue. Sambhv Steel Tubes is expected to list on the BSE and NSE on July 2.