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Sambhv Steel Tubes' IPO saw full subscription on its second day, with the retail portion 1.2 times subscribed. The IPO, featuring a fresh issue and OFS totaling ?540 crore, will fund debt repayment and corporate expenses. Trading at a premium in the grey market, analysts recommend subscribing, citing the company's strategic positioning, integrated operations, and expansion plans. View More
The initial public offering (IPO) of Sambhv Steel Tubes was fully subscribed on the second day of bidding on Thursday. As of 1:03 pm, the issue received bids for 5,60,09,226 shares, against the total issue size of 4,92,06,100 shares, translating to an overall subscription of 1.14 times. The retail individual investor (RII) portion was subscribed 1.2 times, while the non-institutional investor (NII) category saw 1.71 times subscription. The qualified institutional buyer (QIB) segment was subscribed 61%. Investors can apply for a minimum lot size of 182 shares, requiring an investment of Rs 14,924 at the upper end of the price band. In the grey market , the shares were trading at a premium of Rs 9–10, indicating an estimated 11% upside over the issue price. Also Read: HDB Financial Services IPO: Should you subscribe? Here's what brokerages say Live Events The IPO consists of a fresh issue worth Rs 440 crore and an offer for sale (OFS) of Rs 100 crore. Proceeds will primarily be used to repay borrowings of up to Rs 390 crore and meet general corporate expenses. The listing is scheduled for July 2 on both the NSE and BSE. Should you subscribe to the Sambhv Steel Tubes IPO? Goejit Investments- Subscribe At the upper price band of Rs 82, SSTL is valued at a P/E ratio of 44.5x (FY25E annualised), which appears reasonably priced relative to its peers.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—supporting a 'Subscribe' recommendation for investors. Also Read: These 10 multibagger penny stocks surged 200-570% in last 1 year. Do you own any? BP Wealth- Subscribe BP wealth highlights Sambhv’s cost-efficient, single-location integrated facility and rising market share. Ventura Securities too recommends ‘Subscribe’, noting the company’s robust distributor-dealer network spanning 15 states and one union territory, and its expansion into stainless steel products which could push future margins higher. Sambhv’s product portfolio includes black pipes, hollow sections, CRFH pipes, Corten steel pipes, GP pipes, GI pipes, and more. Since commencing operations in 2018, the company has integrated vertically—manufacturing sponge iron, blooms, slabs, and coils in-house. This structure offers insulation against input cost fluctuations and ensures supply-chain reliability. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel) (You can now subscribe to our ETMarkets WhatsApp channel)