Sambhv Steel Tubes Limited IPO

Apply 0
Avoid 0

Established in 2018, Sambhv Steel Tubes Limited is a Chhattisgarh-based integrated manufacturer and one of India’s leading producers of electric resistance welded (ERW) steel pipes and structural tubes. The company also has a strong presence in the stainless steel coils segment. As per CRISIL, Sambhv ranks among the top domestic players by installed capacity for ERW pipes and is one of only two manufacturers producing them from in-house narrow-width hot-rolled (HR) coils. Sambhv Steel Tubes is well-positioned to benefit from India’s infrastructure boom, driven by government initiatives like the Jal Jeevan Mission and Amrit Bharat Station Scheme. Backed by a professional team and seasoned promoters, the company is geared for sustained growth.

Integrated Business Model

Sambhv operates a fully backward-integrated model, beginning with sponge iron, iron ore (sourced from a Navratna PSU), and coal (from a Maharatna PSU) to manufacture finished products such as:

– Black pipes
– GI/GP pipes
– CRFH pipes
– Stainless steel HRAP and CR coils
– Steel door frames

This integration provides cost efficiency, consistent quality, and faster time-to-market.

Manufacturing Footprint

The company has two strategically located manufacturing units:

1. Sarora (Tilda) Facility
2. Kuthrel Facility

Together, they have a total installed capacity of 1.7 million MTPA as of March 2025. A 25 MW captive power plant meets more than 56% of power needs, reducing production costs and the environmental footprint.

Diversified Product Use & Market Reach

Sambhv Steel Tubes Limited’s products cater to a wide range of industries, including housing and infrastructure, water management, agriculture, oil and gas, solar energy, telecom, and automotive. This diversified application ensures broad market reach and demand resilience across both public and private sector projects.

The company operates across 15 states and 1 Union Territory, supported by 700+ dealers and 43 distributors, ensuring a wide market presence.

Innovation & Technology

Innovation is central to Sambhv’s growth:

– Developed corten steel for marine containers
– Introduced termite-proof steel door frames for affordable housing projects
– Uses advanced technologies like Argon Oxygen Decarburization (AOD) and Ladle Refining for improved product quality and consistency

Objects of the Sambhv Steel Tubes Limited IPO:

The net proceeds is to be utilized towards funding of the following objects: 1. Pre-payment or scheduled re-payment of a portion of certain outstanding borrowings availed by our Company (₹ 390 cr) 2. General corporate purposes
DRHP of Sambhv Steel Tubes Limited IPO
RHP of Sambhv Steel Tubes Limited IPO

Sambhv Steel Tubes Limited IPO Details:

Open Date: Jun 25 2025
Close Date: Jun 27 2025
Total Shares: 6,58,53,657
Face Value: ₹ 10 Per Equity Share
Issue Type: Book Building
Issue Size: 540 Cr.
Lot Size: 182 Shares
Issue Price: ₹ 77 to 82 Per Equity Share
Listing At: NSE,BSE

Promoters And Management:

1. Suresh Kumar Goyal, Chairman and Executive Director of Sambhv Steel Tubes Limited, Suresh Goyal has over 20 years of experience in the steel manufacturing industry. He holds a B.Com degree from Pt. Ravishankar Shukla University, Raipur. He previously served as a director in several companies, including Ganpati Sponge Iron and S. Pyarelal Ispat, and currently serves on the board of Sambhv Tubes Private Limited. 2. Vikas Kumar Goyal, Managing Director and CEO, Vikas Goyal has been with the company since its inception. A commerce graduate from Pt. Ravishankar Shukla University, he has over 19 years of industry experience. He has served on the boards of multiple companies and currently holds directorships in Brijwasi Plastic, Sambhv Tubes, and Sambhv Seva Foundation. He is also a partner at Caprize Global LLP. 3. Bhavesh Khetan, Executive Director and COO, Bhavesh Khetan joined the board in July 2023. He is a commerce graduate with over 10 years of experience in trading iron, scrap, and coal. Before joining Sambhv, he was a proprietor at Vinayak Traders.

Financials of Sambhv Steel Tubes Limited IPO:

In Cr.
Particulars 9M FY2025 (Consolidated) FY 2023-24 (Standalone) FY 2022-23  (Standalone)  FY 2021-22 (Standalone)
Revenue from Operations 1,016.09 1,285.75 937.22 819.34
Gross Profit Margin 30.46% 28.43% 25.66% 24.35%
EBITDA 106.36 159.87 117.30 124.51
EBITDA Margins 10.47% 12.43% 12.52% 15.20%
PAT 40.68 82.43 60.38 72.10
PAT Margins 4% 6.41% 6.44% 8.80%
ROCE 7.67% 17.66% 20.20% 28.90%
EBITDA per Tonne (In Rs.) 5,346.25 7,160.70 7421.54 7,911.47
Operating Cash Flows -42.12 142.42 65.55 34.49

Comparison With Peers:

Companies Revenue EBITDA Margins PAT Margins D/E Ratio ROCE EBITDA Per Tonne (In Rs.) MCap P/E
Sambhv Steel Tubes (FY 2024) 1,285.75 Cr. 12.43% 6.41% 0.79 17.66% 7,160 2416.21 Cr. 29.31*
APL Apollo Tubes (FY 2025) 20,690 Cr. 6% 3.65% 0.15 22.80% 3,900 49,920 Cr. 65.90
Hariom Pipes Industries (FY 2025) 1,357 Cr. 13% 4.56% 0.70 14.10% 7,147  1,202 Cr. 19.50
Hi-Tech Pipes (FY 2025) 3,068 Cr. 5% 2.37% 0.14 11.70% 3,500 to 4,000 2,043 Cr. 28
JTL Industries (FY 2025) 1,913 Cr. 6% 5.17% 0.04 13.20% 4,200 to 4,400 2,881 Cr. 29.20
Rama Steel Tubes (FY 2025) 1,048 Cr. 3% 2.19% 0.24 8.50% 1,868 Cr. 82.10
Surya Roshni (FY 2025) 7,435 Cr. 8% 4.68% 0.01 20.90% 5,400 7,277 Cr. 20.90
*Forward PE is 44.54 on the basis of FY 25 PAT.

Recommendation on Sambhv Steel Tubes Limited IPO:

Review and Recommendation of Sambhv Steel Tubes IPO by team IZ is 6/10.

Lead Manager of Sambhv Steel Tubes Limited IPO:

  1. Motilal Oswal Investments Advisors Private Limited
  2. Nuvama Wealth Management Limited

Registrar of Sambhv Steel Tubes Limited IPO:

  1. Kfin Technology Private Limited

Discussion on Sambhv Steel Tubes Limited IPO:

Leave a Reply