Sambhv Steel Tubes Limited has filed its DRHP with SEBI to prepare for its upcoming public issue. This upcoming IPO is offering a fresh issue of equity share worth up to Rs 440 crore and an Offer for sale of equity shares worth up to Rs 100 crore.
The total aggregate size of a public issue in rupees is up to Rs 540 crore, whereas the total no. of equity shares that will be issued by the company is not yet disclosed.
This IPO will follow the book-building process, with not more than 50% of the offer reserved for Qualified Institutional Buyers (QIBs), not less than 15% for Non-Institutional Investors (NIIs), and not less than 35% for retail investors is reserved.
Sambhv Steel Tubes IPO open date and close date are not yet declared. The price band & lot size will be revealed soon by the company. The Shares to be offered through the Red Herring Prospectus are proposed by the company to be listed on the BSE and NSE exchange.
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About Sambhv Steel Tubes Limited
Sambhv Steel Tubes Limited, established in 2017 and headquartered in Raipur, Chhattisgarh, is a leading manufacturer of electric resistance welded (ERW) steel pipes and structural tubes in India. It has a unique single location backward-integrated facility where all the production from raw material to finished goods is managed and controlled for superior quality and cost efficiency. Sambhv produces 600,000 metric tonnes per annum, including ERW black pipes, galvanized iron pipes, and stainless-steel products. The firm is committed towards sustainability and observes stern environmental safeguards. As part of Sambhv's future expansions into manufacturing, the company looks to serve India's growth and development in infrastructure while maintaining very high standards in operations and business ethics.
Sambhv Steel Tubes IPO Objectives
The company intends to use the Net Proceeds from the Fresh Issue primarily for the prepayment or scheduled repayment of a portion of certain outstanding borrowings, with an allocation of ₹390 crore. The remaining funds will be directed towards general corporate purposes.
Sambhv Steel Tubes Limited Financials Performance
Sambhv Steel Tubes financials show good performance for the FY ended 2024, compared to FY 2023:
1. Assets
increased from Rs 552.14 crores in March 2023 to Rs 940.13 crores in March
2024, a 70.27% increase.
2. Revenue
increased from Rs 937.22 crores to Rs 1,285.76 crores, a 37.19% increase.
3. Profit After Tax (PAT)
increased from Rs 60.38 crores to Rs 82.44 crores, a 36.53% increase.
4. Total Borrowing increased from Rs 282.77 crores to Rs 346.88 crores, a 22.67% increase.
Lead manager(s) and Registrar of Sambhv Steel Tubes
IPO
The IPO is managed by Nuvama Wealth Management Limited and Motilal Oswal Investment Advisors Limited, which is the book-running lead manager for this public issue. The company has appointed KFin Technologies Limited as the registrar for this public issue.
Promoters of Sambhv Steel Tubes Limited
Brijlal Goyal, Suresh Kumar Goyal, Vikas Kumar Goyal, Sheetal Goyal, Shashank Goyal And Rohit Goyal identifiable promoter(s). They collectively hold 36.97% of the company's shares. However, post-IPO changes in their shareholding have not yet been disclosed in the Prospectus filed by the company with SEBI. To read the full DRHP, click here.