Sambhv Steel Tubes IPO subscribed 31% so far on Day 1, GMP at 11%. Should you subscribe?
The IPO of Raipur-based Sambhv Steel Tubes (SSTL), a backward-integrated manufacturer of ERW steel pipes and structural tubes, opened for subscription earlier today and has been subscribed 31% so far on the first day of the bidding process, with a
grey market premium
(GMP) of 11%.
Qualified institutional buyers (QIBs) led the response, subscribing to 38% of their quota, followed by retail investors at 32%, and non-institutional investors (NIIs) at 19% of their reserved portion.
Investors can apply for a minimum of 182 shares, requiring a minimum investment of Rs 14,924 at the upper price band. Ahead of the issue opening, the GMP stood at Rs 9–10, indicating an 11% premium over the issue price.
The IPO comprises a fresh issue of shares worth Rs 440 crore and an offer for sale (OFS) of Rs 100 crore. The proceeds will primarily be used to repay borrowings (up to Rs 390 crore) and for general corporate purposes. The stock is scheduled to list on July 2 on both the NSE and BSE.
Should You Subscribe to the Sambhv Steel Tubes IPO?
Geojit Financial Services – Subscribe
At the upper price band of Rs 82, SSTL is valued at a P/E ratio of 44.5x (FY25E annualised), which appears reasonably priced relative to peers. SSTL is strategically positioned to benefit from India's infrastructure push, driven by schemes such as the Jal Jeevan Mission and Amrit Bharat Scheme.
As a backward-integrated player with consistent financial growth, strategic sourcing efficiency, and expansion plans, the company is well-placed for long-term value creation—supporting a Subscribe recommendation for investors.
BP Wealth – Subscribe
BP Wealth highlights Sambhv's cost-efficient, single-location integrated facility and growing market share. Ventura Securities also recommends Subscribe, citing the company's robust distributor-dealer network across 15 states and one union territory, and its expansion into stainless steel products, which could improve margins in the future.
Sambhv's product portfolio includes black pipes, hollow sections, CRFH pipes, Corten steel pipes, GP pipes, GI pipes, and more.
Since commencing operations in 2018, the company has achieved vertical integration—manufacturing sponge iron, blooms, slabs, and coils in-house. This structure offers protection against input cost fluctuations and ensures supply chain reliability.
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