Sambhv Steel Tubes Readies for Rs 540 Crore IPO

Sambhv Steel Tubes, a prominent manufacturer of electric resistance welded steel pipes, has filed for an IPO to raise Rs 540 crore. The IPO will include a fresh equity issue and an offer-for-sale by promoters. Proceeds will be used for debt repayment and general corporate purposes.

Sambhv Steel Tubes, a leading manufacturer of electric resistance welded (ERW) steel pipes and structural tubes, has filed a draft prospectus with the market regulator Sebi to raise Rs 540 crore through an initial public offering (IPO).

The proposed IPO consists of a fresh issue of equity shares worth Rs 440 crore and an offer-for-sale (OFS) of shares valued at Rs 100 crore by the promoters. The draft papers, filed on Monday, reveal that those selling shares in the OFS include Shashank Goyal, Rohit Goyal, Kaushlya Goyal, Harsheet Goyal, and Rinku Goyal.

Proceeds from the fresh issue amounting to Rs 390 crore will be directed towards repaying debt and covering general corporate expenses. As of March 2024, Sambhv Steel Tubes had a total debt of Rs 347 crore. The company is a key player in India's ERW steel pipes and structural tubes market, in terms of installed capacity.

(With inputs from agencies.)