IPO Details
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Schedule of Sambhv Steel Tubes Ltd
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Allotment of bids
Refund Initiation
Listing on exchange
About Sambhv Steel Tubes Ltd IPO
The IPO of Sambhav Steel Tubes Ltd is a 100% book-built issue comprising a fresh issue and an offer for sale. The fresh issue is pegged at ₹440 crore and the offer for sale is of ₹100 crore.
Objectives of Sambhv Steel Tubes Ltd IPO
The company proposes to utilise the proceeds from the IPO for:
- Pre-payment or scheduled repayment of a portion of certain outstanding borrowings availed by the company
- General corporate purposes
Sambhv Steel Tubes Ltd IPO Valuation
| Detail | Information |
|---|---|
Upper Price Band | TBA |
Fresh Issue Size | Up to ₹440 crore |
Offer for Sale | Up to ₹100 crore |
EPS in (₹) for FY 24 | 3.79 |
Sambhv Steel Tubes Ltd Share Offer and Subscription Details
| Investor Category | Shares Offered |
|---|---|
QIBs | Not more than 50% of the net offer |
Non-institutional Bidders | Not less than 15% of the net offer |
Retail Individual Bidders | Not less than 35% of the net offer |
Industry Outlook
The demand for ERW pipes and tubes and SAW pipes and tubes are projected to grow at respective CAGRs of 7-9% and 6-7% between fiscals 2025 and 2029 on the back of rising investments in housing, urban infrastructure, WSS, irrigation, smart cities and oil and gas segments.
Company Information
Sambhv Steel Tubes Ltd is one of the key manufacturers of electric-resistance welded steel pipes and structural tubes (hollow section) in India in terms of installed capacity as of March 31, 2024. The company is the only company in India with a single location backward integrated manufacturing facility for ERW steel pipes and tubes with presence across the value chain as of March 31, 2024.
Sambhv Steel Tubes Ltd Strengths
The only single location backward integrated facility in India
Sambhv Steel Tubes Ltd is the only company in India with a single location backward integrated manufacturing facility for ERW steel pipes and tubes with presence across the value chain as of March 31, 2024.
Strategically located manufacturing plants resulting in operational efficiencies
The company manufactures ERW black steel pipes and structural tubes (hollow section) at its Sarora (Tilda) facility, which is spread across 334,540 square meters of owned land strategically located in the mineral rich belt of Chhattisgarh.
Strong process innovation and execution capabilities allowing it to produce value-added products
It's the only company in India producing narrow-width HR coils through a secondary manufacturing route, using induction furnaces and direct reduced iron. Through process innovation, the company has been able to produce customised value-added products.
Wide-spread well connected distribution network across India
As of March 31, 2024, the company has 33 distinct distributors with two distributors distributing through six branches in 15 states and one union territory taking the total distributor network to 39. These distributors in turn distribute its finished products through over 600 dealers in India as of March 31, 2024.
Risks of Sambhv Steel Tubes Ltd
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An increase in the cost of or a shortfall in the availability of its key raw materials such as iron ore, coal, iron ore pellets, sponge iron and mild steel scrap from its suppliers could have a material adverse effect on its business, results of operations, profitability and margins, cash flows and financial condition.
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Any disruption or shortage of essential utilities could disrupt their manufacturing operations and increase their production costs, which could adversely affect their results of operations.
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The company's revenues are concentrated in north and west India. Any adverse changes in the conditions affecting these regions and its inability to grow its business in new geographic markets may adversely impact its business, results of operations, profitability and margins, cash flows and financial condition.
All Financial Information about Sambhv Steel Tubes
Particulars (in Rs. crores)
Particulars (in Rs. crores)
Comparison with peers
| Parameter (For FY 24) | Sambhv Steel Tubes Ltd | APL Apollo Tubes Ltd | Hariom Pipes Industries Ltd | Hi-tech Pipes Ltd | JTL Industries Ltd | Rama Steel Tubes Ltd | Surya Roshni Ltd |
|---|---|---|---|---|---|---|---|
Revenue from Operations (in ₹ crore) | 1285.757 | 18118.80 | 1153.188 | 2699.293 | 2040.229 | 1046.510 | 7809.270 |
P/E | NA | 58.05 | 39.41 | 73 | 35.17 | 30.41 | 24.07 |
Return on Net Worth (in %) | 25.42 | 22.21 | 13.56 | 8.90 | 19.15 | 10.40 | 17.41 |
EPS in ₹ | 3.79 | 26.40 | 20.34 | 3.25 | 6.63 | 0.50 | 30.51 |
IPO Registrar and Book Running Lead Managers
KFin Technologies Ltd is the registrar of this IPO. The book running lead managers are Nuvama Wealth Management Ltd and Motilal Oswal Investment Advisors Ltd.
Business Model
Sambhv Steel Tubes Ltd manufactures a range of finished products including ERW black pipes and tubes (hollow section) and galvanised iron (GI) pipes. It’s one of the two players in India manufacturing ERW steel pipes and tubes (along with hollow section pipes and tubes) using narrow-width HR coils.
Company Growth Trajectory
The company has established a track record of healthy revenue growth and profitability. Its revenue from operations increased to ₹1285.757 crore in Fiscal 2024 from ₹819.349 crore in Fiscal 2022 while its restated profit for the year increased to ₹82.439 crore in Fiscal 2024 from ₹72.108 crore in Fiscal 2022.
Market Position
The company is the only player in India to manufacture narrow-width HR coil with backward integration capability, as of March 31, 2024. It has a wide distribution network in India which extends across 15 states and one union territory as of March 31, 2024.
Sambhv Steel Tubes Ltd Profit and Loss
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Total Income (in ₹ crore) | 1289.375 | 939.004 | 820.753 |
Profit Before Tax (in ₹ crore) | 110.765 | 81.117 | 96.675 |
EBITDA (in ₹ crore) | 159.872 | 117.30 | 124.515 |
EPS in ₹ | 3.79 | 3.01 | 3.59 |
Sambhv Steel Tubes Ltd Cash Flow Statement
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Profit Before Tax (in ₹ crore) | 110.765 | 81.117 | 96.675 |
Net Cash Generated from Operating Activities (in ₹ crore) | 142.428 | 65.552 | 34.495 |
Net Cash (Used in) from Investing Activities (in ₹ crore) | (311.600) | (84.90) | (100.248) |
Net Cash (Used in)/ from Financing Activities (in ₹ crore) | 176.559 | 19.485 | 65.684 |
Cash and Cash Equivalents at the end of the Year (in ₹ crore) | 7.584 | 0.197 | 0.060 |
How to Check Allotment Status of Sambhv Steel Tubes Ltd?
You can check the allotment status of Sambhv Steel Tubes Ltd IPO through the BSE website or through its registrar’s portal. To check the status on the BSE website:
- Visit the BSE website
- Click on “Investor Services” and choose “Application Status Check”
- Choose the issue type — Equity or Debt
- Select the Issue Name from the drop-down.
- Enter your application number or PAN number
- Check the box that says “I’m not a Robot” and click on “Search” to know the allotment status
To know the status from the registrar’s website:
- Visit the website of KFin Technologies Ltd
- Choose IPO allotment status from “Products” dropdown
- Click on any of the links
- Select the IPO
- Input either your application number, PAN number or Demat number
- Enter captcha and click on Submit
How to Apply for Sambhv Steel Tubes Ltd IPO?
To apply for this IPO:
- Step 1: Log in to your Kotak Securities Demat account: Log in to your Demat account to access IPO investments. Next, select the current IPO section.
- Step 2: Specify IPO details: Enter the number of lots and the price you wish to apply for.
- Step 3: Enter UPI ID After entering your UPI ID, click submit. This will place your bid with the exchange.
- Step 4: Mandate Notification: Your UPI app will receive a mandate notification to block funds.
- Step 5: Approve Request Your funds will be blocked once you approve the mandate request on your UPI.
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.
Sambhv Steel Tubes Ltd IPO FAQs
What is Sambhv Steel Tubes Ltd IPO?
The IPO of Sambhv Steel Tubes Ltd comprises a fresh issue and an offer for sale. The fresh issue aggregates up to ₹440 crore while the offer for sale aggregates up to ₹100 crore.
When will the IPO of Sambhv Steel Tubes Ltd go live?
The exact dates of the IPO are yet to be announced.
