Sambhv Steel Tubes Limited IPO

Sambhv Steel Tubes Limited is an integrated steel manufacturer primarily engaged in the production of Electric Resistance Welded (ERW) pipes, structural steel tubes, and other value-added steel products. Headquartered in Raipur, Chhattisgarh, the company operates a fully backward-integrated manufacturing facility, enabling efficient production from raw steel processing to final product fabrication.

DRHP Check Allotment Status

Min Investment

₹14,924

Lot Size

182 Shares

Price Range

₹82.0

Issue Size (₹ Cr.)

₹540.0

IPO Type

BSE NSE, Mainboard

Key Metrics

Face Value

₹ 10

GMP

₹ 11.0

Subscription

1.69x

EPS

₹ 1.84

P/E Ratio

44.54 x

RoNW

25.42%

ROE

25.42%

Debt to Equity (₹ Cr.)

0.80

Timeline

IPO Opened25/06/2025Wednesday

IPO CloseToday

Allotment30/06/2025Monday

Refund01/07/2025Tuesday

Listing02/07/2025Wednesday

Strengths

Fully Integrated Manufacturing Facility The company operates a single-location, backward-integrated plant that allows it to control the entire production cycle—from raw materials to finished steel tubes—ensuring better efficiency and cost control.
Strategic Location Advantage Located in Chhattisgarh, close to major raw material sources, the facility benefits from reduced transportation costs and enhanced supply chain reliability.
Diverse Product Portfolio Sambhv Steel produces a wide range of steel products, including ERW pipes, galvanized iron pipes, structural hollow sections, and stainless steel tubes, catering to multiple industries like construction, infrastructure, and agriculture.
Strong Distribution Network The company has an extensive presence across India through a network of over 600 dealers and 39 distributors, enabling it to reach a large and diverse customer base.
Focus on Energy Efficiency With a captive power plant and waste heat recovery systems, Sambhv Steel emphasizes operational sustainability while reducing energy costs and improving productivity.

Weaknesses

Geographical Concentration Risk The company’s operations are centered in a single location in Chhattisgarh, making it vulnerable to region-specific disruptions such as natural calamities, labor issues, or political unrest.
High Working Capital Requirements Being in a capital-intensive industry, the company relies heavily on working capital for procurement, production, and distribution, which can impact liquidity if not managed efficiently.
Dependence on the Steel Sector Cycles Demand and pricing in the steel industry are cyclical and influenced by global trends, which may lead to fluctuations in revenue and profitability.
Limited Export Presence Sambhv Steel primarily serves the domestic market. A lack of significant international exposure may limit its growth potential and diversification benefits.
Environmental and Regulatory Compliance Risks Steel manufacturing involves stringent environmental norms. Any non-compliance or change in regulation could lead to penalties or increased costs.