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SAMBHV IPO

Sambhv Steel Tubes Limited
Start Date25-06-2025
Application Timing10am-5pm
Price Range₹77 - ₹82
Min Qty182
Min. Investment₹14014
Listing DateNA
Close Date27-06-2025

About Sambhv Steel Tubes Limited

Sambhv Steel Tubes Limited, incorporated in 2017, is a leading manufacturer of Electric Resistance Welded (ERW) steel pipes and structural tubes in India. The company operates from a strategically located manufacturing facility in Sarora, Tehsil Tilda, Raipur, Chhattisgarh, benefiting from proximity to key raw materials like iron ore and coal sourced from Navratna and Maharatna PSU mines.

The company has built a widespread distribution network covering 15 states and 1 union territory, enabling strong market access and delivery efficiency. Their product portfolio includes sponge iron, blooms/slabs, narrow-width HR coils, and GI pipes, catering to a wide spectrum of industrial and infrastructure requirements. As of December 2024, Sambhv has demonstrated consistent financial performance and strong operational capabilities, positioning itself well in the growing Indian steel market.

Why To Invest in Sambhv Steel Tubes Limited

Integrated Manufacturing Advantage: Sambhv operates India’s only single-location backward integrated facility, ensuring cost and supply chain efficiency.

Strong Financials: FY24 (Annualised) PAT of 82.44 Cr and Revenue of 1,289.38 Cr with ROE of 25.42% and EBITDA margin of 12.43%.

Strategic Location: The facility is located near Asia's largest coal mines and public sector iron ore sources, reducing input costs.

Rising Demand: ERW steel pipes and tubes are witnessing increased demand due to infrastructure push, oil & gas pipelines, and housing sector growth.

Experienced Team: The promoters and leadership team bring deep industry experience, aiding robust execution and expansion strategies.

IPO Utilization: ?390 Cr of proceeds to be used for debt reduction expected to strengthen balance sheet and reduce interest burden.

Financial Table
Period Ended 31 Dec 2024 31 Mar 2024 31 Mar 2023 31 Mar 2022
Assets1,411.82 940.13552.14458.51
Revenue 1,018.811,289.38939.00820.75
Profit After Tax 40.6982.4460.3872.11
EBITDA106.37159.87117.30124.52
Net Worth 478.46438.28210.40149.30
Reserves and Surplus 197.28190.31129.21
Total Borrowing 619.15346.88282.77241.29
Strengths And Risks
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Backward Integrated Plant: Reduces raw material dependency and ensures margin stability.
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Financial Performance: ROE of 25.42%, PAT 82.44 Cr in FY24, strong EBITDA and asset growth.
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Well-Positioned Distribution Network: Coverage in major industrial states like Maharashtra, Gujarat, Haryana, and UP.
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Innovation Focus: Capability to produce value-added steel products using efficient processes.
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Proximity to Raw Material: Located near high-producing coal and iron mines logistical cost advantage.
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Raw Material Volatility: Prices of iron ore and coal are market-linked and could impact margins.
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Highly Competitive Industry: Steel pipe and tube manufacturing faces competition from both domestic and global players.
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Client Concentration: Any slowdown in infra or government spending may affect volumes.
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Debt Position: As of Dec 2024, borrowings were ?619.15 Cr though post-IPO it is expected to decline with repayment from proceeds.
FAQs
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