Sambhv Steel Tubes Unveils Draft Prospectus for Rs 550 Crore IPO

Sambhv Steel Tubes has submitted a draft prospectus to Sebi seeking to raise Rs 550 crore via an IPO. The IPO consists of a fresh equity issue worth Rs 440 crore and an offer-for-sale of Rs 100 crore by promoters. Proceeds will be used for debt repayment and corporate purposes.

Sambhv Steel Tubes has filed a draft prospectus with the markets regulator Sebi aiming to raise Rs 550 crore through an initial public offering (IPO). The IPO includes a fresh equity issue valued at Rs 440 crore and an offer-for-sale (OFS) of shares worth Rs 100 crore by its promoters, as per the draft papers submitted on Monday. The funds generated from the fresh issue will be allocated for debt repayment and general corporate purposes.

Sambhv Steel Tubes is recognized as a key manufacturer of electric resistance welded (ERW) steel pipes and structural tubes in India, boasting significant installed capacity as of March 31, 2024. A Crisil report indicates that the domestic demand for steel pipes and tubes has been growing steadily, attributed to government efforts to bolster urban infrastructure and investments in the oil and gas sector.

Projections suggest that the demand for domestic steel pipes will reach 18.50-20.50 million tonnes per annum (MTPA) by FY29, growing at an 8-9 per cent compound annual growth rate (CAGR). Nuvama Wealth Management Ltd and Motilal Oswal Investment Advisors Ltd are the lead managers for this IPO.

(With inputs from agencies.)