The shares of Sambhv Steel Tubes made a strong debut on stock markets on July 2, listing at Rs 110 apiece on NSE. This marks a premium of 34.15 percent over the IPO price of Rs 82 per share.

On BSE, the shares listed with a 34.27 percent premium to IPO price at Rs 110.10 apiece. The stock debuted with a market capitalisation of nearly Rs 2,948 crore.

Notably, the listing premium is higher than grey market estimates. Ahead of listing, the unlisted shares of the company were trading with a grey market premium (GMP) of over 17 percent to IPO price at Rs 96 apiece, according to Investorgain.

While the stock made a strong debut on the Dalal Street today, analysts advise caution. "Investors must remember that post-listing performance will hinge on delivery and earnings progression, not sentiment alone… The medium-term story remains linked to India’s broader capex and manufacturing resurgence," said Bhavik Joshi, Business Head at INVasset PMS.

Sambhv Steel Tubes IPO

The Rs 540-crore IPO of the company saw strong investor interest, garnering 28 times subscription within its three days of public bidding. It comprised a fresh issue of shares worth Rs 440 crore and an offer for sale (OFS) worth Rs 100 crore by promoters. The IPO was open for public bidding from June 25 to June 27, with its price band set at Rs 77-82 apiece.

Anchor investors:

A day before the IPO opened for public bidding, the Chhattisgarh-based company finalised allocation of 1.96 crore equity shares to anchor investors at a price of Rs 82 per share. Whiteoak Capital Mutual Fund, Ashoka India, Motilal Oswal MF, Niveshaay Sambhav Fund, Saraswati Commercial (India), Astrone Capital, Citigroup Global, Nomura Singapore, Societe Generale, and BNP Paribas Financial Markets are amongst the institutional investors participated in the anchor book.

IPO objective:

The company that manufactures stainless steel coils with backward integration proposed to utilise fresh issue proceeds mainly to pare debt by Rs 390 crore, and the remainder funds for general corporate purposes. Its total outstanding borrowings were Rs 554.6 crore at the end of April 2025.

Promoters hold 71.93 percent stake in Sambhv Steel Tubes that competes with listed entities like APL Apollo Tubes, Hariom Pipes Industries, Hi-Tech Pipes, JTL Industries, Rama Steel Tubes, and Surya Roshni. The remaining 28.07 percent shares are owned by the public shareholders.

Nuvama Wealth Management, and Motilal Oswal Investment Advisors are acting as the book running lead managers for the Sambhv Steel Tubes IPO.

Geojit Financial Services had said that the company seemed to be reasonably priced at the upper limit of the price band. While advising investors to subscribe to the issue, Geojit said, "SSTL is strategically positioned to capitalize on India’s infrastructure boom, driven by initiatives such as the Jal Jeevan Mission and Amrit Bharat scheme. As a backward-integrated player with consistent financial growth, efficient strategic sourcing, and ongoing expansion plans, the company is well-poised for long-term value creation."

Choice Equity Broking had also recommended investors to subscribe to the issue for long term, stating that the valuation seems to be fully priced compared to its peer average. "Backed by fully integrated operations and inhouse manufacturing capabilities, the company is well-positioned to capitalize on this sectoral growth. While there may be short-term pressure on margins, the company's ongoing expansion and favorable industry dynamics point to strong long-term growth potential," the brokerage said.