Sambhv Steel Tubes is heading to the public markets with a ₹540 crore IPO.
Founded in 2017, the company has built a fully integrated manufacturing base in Chhattisgarh; producing everything from sponge iron to ERW steel pipes and supplies across 15 states.
Its backward-linked facility and access to nearby raw material sources offer operating efficiencies. But in a capital-intensive and cyclical sector, investor interest will hinge on profitability, debt control, and steady execution.
IPO Details:
Objective:
Sambhv Steel Tubes is raising ₹440 crore through fresh equity primarily to prepay or repay certain borrowings.
This debt reduction move is aimed at improving its capital structure and freeing up capacity to fund future expansion from internal accruals.
About the company:
Sambhv Steel Tubes manufactures ERW steel pipes and structural tubes using a backward-integrated model. It operates from a single-site facility in Sarora (Tilda), Raipur, allowing it to handle the entire value chain from sponge iron to finished GI pipes.
Its product portfolio includes sponge iron, blooms/slabs, narrow-width hot rolled coils, black pipes, and galvanised (GI) tubes. These are sold to distributors, government projects, and direct consumers across 15 states and one union territory.
Its raw material access is strategically positioned: iron ore is sourced from a Navratna PSU, and coal from one of Asia’s largest mines operated by a Maharatna subsidiary located just 250 km away.
As of December 2024, the company had 23 people in sales and marketing, and a distribution footprint spanning states like Chhattisgarh, Gujarat, Maharashtra, UP, and Rajasthan.
Financial performance
Sambhv has reported consistent revenue growth over FY22 to FY24. Revenue rose from ₹821 crore in FY22 to ₹1,289 crore in FY24. PAT stood at ₹82.44 crore in FY24, up from ₹60.38 crore the year before.
Margins are moderate but stable: EBITDA margin was 12.4%, while PAT margin stood at 6.4% as of FY24. ROE was strong at 25.4%, and the debt-to-equity ratio was 0.80.
However, borrowings increased from ₹283 crore in FY23 to ₹347 crore in FY24, and further rose to ₹619 crore by December 2024, highlighting the company's need for capital restructuring via IPO proceeds.
Promoters and investors
The company is promoted by the Goyal family: Brijlal Goyal, Suresh Kumar Goyal, Vikas Kumar Goyal, Sheetal Goyal, Shashank Goyal, and Rohit Goyal. They collectively held 71.9% of the company pre-IPO. This will reduce to around 57.4% post-listing.
There are no external institutional investors listed in the DRHP as pre-IPO shareholders. The OFS component of ₹100 crore represents partial exits by promoters.
The IPO funds will be used for…
Out of the ₹440 crore raised through fresh issue, ₹390 crore will be used for repaying or prepaying certain outstanding borrowings. The rest will support general corporate purposes, offering financial flexibility as the company scales.
There is no plan to fund new capex from the IPO proceeds; this is a deleveraging story at its core.
Risk factors
While Sambhv has shown steady growth, the risks are clear:
First, the company operates in a cyclical sector tied to commodity prices, infrastructure capex, and government spending.
Second, it remains a single-location operation which poses concentration risks despite backward integration.
Third, debt levels have been historically high, and the IPO proceeds are being used to fix that, not to fund growth. Future capex might need new funding rounds unless internal accruals improve.
Lastly, promoter control remains high post-IPO, and the business is still young, founded only in 2017.
Final take
Sambhv Steel Tubes is not a flashy business, but it’s built a solid manufacturing backbone in under a decade. The IPO is mainly a balance sheet reset; a way to cut debt and create financial headroom.
What stands out is its end-to-end integration and distribution reach, but margin volatility and sector cyclicality remain concerns. Investors with a medium-term view may find value if execution and demand trends stay strong.
But this is no momentum story, it’s one that will unfold with steel cycles, operating discipline, and prudent capital allocation.
FAQs
What is the total issue size of the Sambhv Steel Tubes IPO?
The total issue size is ₹540 crore, comprising a fresh issue of ₹440 crore and an offer for sale (OFS) of ₹100 crore by the promoters. This includes the issuance of 5.36 crore new equity shares and a sale of 1.22 crore shares through OFS.
What are the Sambhv Steel Tubes IPO dates and listing schedule?
The IPO opens on June 25, 2025, and closes on June 27, 2025. The basis of allotment is expected on June 30, with shares credited by July 1. The stock is likely to list on the NSE and BSE on July 2, 2025.
What is the Sambhv Steel Tubes IPO price band and lot size?
The price band for the IPO is ₹77 to ₹82 per share. The minimum lot size for retail investors is 182 shares, which requires an investment of ₹14,924 at the upper price band.
How will Sambhv Steel Tubes use the IPO proceeds?
Out of ₹440 crore from the fresh issue, ₹390 crore will go toward repaying or prepaying existing borrowings. The balance will be used for general corporate purposes, helping reduce leverage and improve financial flexibility.
Who are the promoters of Sambhv Steel Tubes?
The company is promoted by the Goyal family — including Brijlal, Suresh Kumar, Vikas Kumar, Sheetal, Shashank, and Rohit Goyal. Their collective pre-IPO holding was 71.9%, which will reduce to 57.4% post-issue.
What products does Sambhv Steel Tubes manufacture?
Sambhv manufactures electric resistance welded (ERW) steel pipes and structural tubes, along with sponge iron, blooms/slabs, narrow-width hot rolled coils, and GI pipes. It operates a fully integrated facility in Chhattisgarh serving 15 states and 1 union territory.
Is Sambhv Steel Tubes a profitable company?
Yes. Sambhv reported a net profit of ₹82.44 crore in FY24, up from ₹60.38 crore in FY23. Its EBITDA margin stood at 12.4%, with a strong return on equity (ROE) of 25.4% as of March 2024.
What are the risks of investing in Sambhv Steel Tubes IPO?
Key risks include high debt levels, single-location dependency, sector cyclicality, and promoter concentration. The company is also relatively young, incorporated in 2017, and operates in a capital-intensive and commodity-sensitive segment.
