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Sambhav Steel Tubes Limited is going to launch its Initious Public Offering (IPO) on 25 June 2025, which will be open for subscription till 27 June 2025. Through this IPO, the company wants to raise a total of Rs 540 crore. The company will use the raised amount to repay some of its old debt and to meet the general corporate needs.
Fresh issue and offer for cell
The total issue in IPO is Rs 540 crore, out of which 440 crores will be in the form of fresh issue i.e. new shares of the company will be issued. At the same time, a share of Rs 100 crore will come under the offer for sale (offs), in which the current investors will sell their shares. The fresh issue consists of 5.37 crore new shares, and 1.22 crore shares in OSS.
Price band, lot size and employee discount
The price band of this IPO has been kept between Rs 77 to Rs 82 per share. Investors will have to buy a lot of at least 182 shares and beyond orders will also be in their coefficient. The face value of each share is Rs 10. The company is also giving a discount of Rs 4 per share to its employees.
Market cap and investment structure
After the IPO, the company’s market capital (market cap) can range between Rs 2,296 crore to Rs 2,416 crore, which will be based on the dependent value of the stock. Talking about the reservation for investors, 50 percent share is for qualified Institutional Buyers (QIB), 15 % is reserved for non-institutional investors (NII) and 35 percent is reserved for retail investors.
Company income and profits
Possible steel tubes have increased their income continuously in the last few years. In FY22, the company’s revenue was Rs 819 crore, which increased to Rs 1,286 crore in FY24. In the first nine months of FY25, the company has earned Rs 1,016 crore. Talking about gross profit, FY22 has increased from 200 crores to Rs 366 crore in FY24, and the margin also increased from 24.4 per cent to 28.4 per cent.
EBITDA and Net Profit performance
Although the company’s Ebitda FY22 fell slightly from Rs 125 crore to Rs 117 crore in FY23, but in FY24 it increased to Rs 160 crore. Ebitda stood at Rs 106 crore in nine months of FY25. At the same time, the Ebitda margin has come down to 10.5 percent, which can be a matter of concern.
Talking about Net Profit i.e. PAT, it was Rs 72 crore in FY22, Rs 60 crore in FY23 and Rs 82 crore in FY24. The company’s PAT is Rs 41 crore in the 9 months of FY25.
What does the company make?
Possible steel tubes are one of India’s leading companies, which makes Electric Resistance Welded (ERW) steel pipes and structural tubes. The company has the facility of backward integration, making it itself mid-level items like sponge iron, HR/CR/GP coils that are later converted into finished products.
Its pipes and tubes are used in many industries such as housing, infrastructure, agriculture, water transport, oil and gas, engineering, solar energy and fire fighting systems.
Who is handling this IPO?
Book running lead managers (BRLMS) for this IPO:
Nuvama Wealth Management
Motilal Oswal Investment Advisors
The IPO Registrar KFIN Technologies LTD has been created, which will see the work related to share allotment and investors.
Disclaimer: (Information provided here is being given only for information. It is necessary to tell here that the investment market is subject to risks. Always consult expert before investing as an investor. Never is advised to invest money from Abplive.com.
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