Sambhv Steel Tubes IPO Draws Strong Demand as GMP Holds at 11%

Sambhv Steel Tubes’ IPO is seeing solid traction as it wraps up its final day of bidding. The grey market premium (GMP) remains steady at ₹9–10, translating to an 11% premium over the upper price band of ₹82. The issue has been oversubscribed, with non-institutional investors leading the charge at 3.12x, followed by retail investors at 1.84x. Qualified institutional buyers have subscribed 61% so far.

 

Key highlights:

 

- IPO size: ₹540 crore (₹440 crore fresh issue + ₹100 crore OFS)

- Price band: ₹77–₹82 per share

- GMP: ₹9–₹10, indicating strong secondary market interest

- Minimum investment: ₹14,924 for 182 shares

- Listing date: July 2, 2025, on NSE and BSE

 

Brokerages including Geojit, BP Wealth, and Ventura Securities have issued ‘Subscribe’ ratings, citing Sambhv’s backward-integrated operations, strong distribution network across 15 states, and expansion into stainless steel products. The company plans to use ₹390 crore from the proceeds to repay debt, which could improve its balance sheet and margins.

 

Despite a high P/E ratio of 44.5x (FY25E), analysts believe the valuation is justified given the company’s growth potential and strategic positioning in India’s infrastructure boom. The IPO has also attracted ₹161 crore from anchor investors.

 

Outlook: With strong demand, a stable GMP, and positive analyst sentiment, Sambhv Steel Tubes is poised for a healthy listing. Investors are betting on its ability to scale and ride the infrastructure wave.

 

Sources: Economic Times, IPO Central, Chittorgarh