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The IPO of Sambhv Steel Tubes is gaining traction. It is currently trading at a premium in the grey market. The IPO has been oversubscribed, led by non-institutional investors. Brokerages like Goejit Investments and BP Wealth recommend subscribing to the IPO. They cite the company's strategic positioning and integrated facility. Ventura Securities also suggests subscribing, noting the company's expansion plans. View More

The initial public offering ( IPO ) of Raipur-based Sambhv Steel Tubes Ltd, a backward-integrated producer of ERW steel pipes and structural tubes, which opened for subscription on Wednesday, has ended with an overall subscription of 28.45 times. At the end of the last day of bidding, the qualified institutional buyers (QIBs) subscribed to the issue by 62.32 times, followed by the non-institutional investors (NIIs), who subscribed to the issue by 31.82 times. The retail investors subscribed to the issue by 7.98 times. The shares of Sambhc Steel Tubes are trading at a grey market premium ( GMP ) of Rs 11–12, indicating a 13.4% premium over the issue price. Investors can bid for a minimum of 182 shares, translating to a minimum investment of Rs 14,924 at the upper end of the price band. Live Events The IPO comprises a fresh issue of shares worth Rs 440 crore and an offer for sale (OFS) of Rs 100 crore. The company plans to utilise the proceeds primarily to repay borrowings up to Rs 390 crore and for general corporate purposes. The shares are expected to be listed on both the NSE and BSE on July 2. What brokerages say about 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. 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. Choice Broking- Subscribe for long term At a higher price band, the company is demanding a valuation of a P/E of 29.3x (based on FY24 EPS of Rs. 2.8) and EV/Sales of 2.4x; this valuation seems to be fully priced compared to its peer average. Annualizing 9MFY25 earnings (EPS of Rs 1.8), the implied P/E rises to 44.5x, reflecting a temporary decline in profitability due to ongoing facility expansions. Backed by fully integrated operations and in-house 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. (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)