About
Commencing operations in 2018, Sambhv Steel Tubes is a Chhattisgarh-based steel manufacturing company and one of India’s key manufacturers of electric resistance welded (ERW) steel pipes and structural tubes. The company produces a comprehensive range of products including ERW black pipes and tubes, pre-galvanized pipes, galvanized iron pipes, CRFH pipes, and steel door frames through its backward-integrated manufacturing process.
Operating from facilities in Sarora (Tilda) and Kuthrel in Raipur district, the company benefits from strategic proximity to high-grade iron ore and coal sources. Its advanced hot rolling mill with hydraulic automatic gauge control technology enables production of narrow-width HR coils, positioning it among the select few Indian manufacturers producing ERW pipes using narrow-width coils.
With a distribution network across 15 states and one union territory, the company serves diverse sectors including housing, infrastructure, agriculture, automotive, telecommunications, oil and gas, and solar energy, achieving consistent margin growth from 24.35% in FY2022 to over 30% by December 2024.
IPO schedule
| Issue open date |
2025-06-25 |
| Issue close date |
2025-06-27 |
| UPI mandate deadline |
2025-06-27 (5 PM) |
| Allotment finalization |
2025-06-30 |
| Refund initiation |
2025-07-01 |
| Share credit |
2025-07-01 |
| Listing date |
2025-07-02 |
| Mandate end date |
2025-07-12 |
| Lock-in end date for anchor investors (50%) |
2025-07-30 |
| Lock-in end date for anchor investors (remaining) |
2025-09-28 |
Financials
| Financial Year Ended |
March 2022 |
March 2023 |
March 2024 |
December 2024 |
| Total Assets |
458.51 |
552.14 |
940.13 |
1411.82 |
| Revenue |
820.75 |
939 |
1289.38 |
1018.81 |
| Profit After Tax |
72.11 |
60.38 |
82.44 |
40.69 |
| Net Worth |
149.30 |
210.40 |
438.28 |
478.46 |
*All figures are in ₹ Crores.
Issue size
| Funds Raised in the IPO |
Amount |
| Overall |
₹540 crores |
| Fresh Issue |
₹440 crores |
| Offer for Sale |
₹100 crores |
Utilisation of proceeds
| Purpose |
INR crores (%) |
| Repayment of certain borrowings |
390.00 (88.64%) |
Strengths
- The Company has a fully backward-integrated setup enabling efficient in-house production and cost savings.
- Proprietary process innovations like AOD and ladle refining uniquely position the company to produce specialized, value-added steel products at lower costs.
- The company has 43 distributors across 15 states, reaching 700+ dealers and OEMs within a year of ERW product launch.
- Poised to benefit from rising steel pipe demand driven by infrastructure growth and material substitution.
- The company has experienced Promoters and management team with vast experience in the steel industry.
Consistent growth with revenue rising from ₹819.35 cr in FY22 to ₹1,285.76 cr in FY24.
Risks
- Under-utilization of expanded capacities may lead to inefficiencies and hurt profitability.
- Rising costs or shortages of key raw materials like iron ore and coal may impact the company’s margins and operations.
- Dependence on a few key raw material suppliers without firm contracts, along with raw material price volatility, may impact availability, cost, and profitability.
- Falling return on capital employed due to lower EBIT and higher capital base may impact profitability and growth.
- Heavy reliance on North and West India markets; regional disruptions or limited geographic diversification could impact growth and profitability.
- Disruptions or shutdowns at key manufacturing facilities due to operational, regulatory, or external risks could materially impact business and profitability.
- Failure to obtain, renew, or maintain required licenses and approvals on time may disrupt operations and adversely affect financial performance.
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