Sambhv Steel Tubes IPO Day 3: Issue Subscribed Over 28 Times; QIBs, NIIs Power Momentum

The Rs 540-crore IPO of Sambhv Steel Tubes entered its third and last day of subscription on June 27. Thus far, the issue was subscribed over 28 times, with qualified institutional buyers and non-institutional investors leading the charge.

The IPO received bids for nearly 140 crore shares, as against the offer size of 4.92 crore shares, according to data on BSE. QIBs emerged as the front runners, bidding over 62 times their allotted quota, while the NII portion saw healthy demand as well, subscribed nearly 32 times. However, retail appetite remained in comparison with the segment drawing only 8 times subscription so far.

The IPO comprises of a fresh issue worth ₹440 crore and an offer for sale (OFS) of ₹100 crore by the promoters. The subscription opened for bidding on June 25 with a price band of ₹77–82 per share.

In the run-up to its listing, shares of the Chhattisgarh-based company were commanding a 12–13% premium in the grey market, trading around ₹92 apiece, according to Investorgain.

On the eve of the IPO launch, Sambhv Steel Tubes also allotted 1.96 crore shares to anchor investors at ₹82 per share. Marquee names in the anchor book include Whiteoak Capital MF, Ashoka India, Motilal Oswal MF, Niveshaay Sambhav Fund, Astrone Capital, and global institutions such as Citigroup, Nomura Singapore, Societe Generale, and BNP Paribas Financial Markets.

The manufacturer of stainless steel coils plans to use ₹390 crore from the fresh issue to reduce debt, with the rest earmarked for general corporate purposes. As of April 2025, the company had total outstanding borrowings of ₹554.6 crore.

Promoters currently hold a 71.93% stake in the company, while the remaining 28.07% is owned by public shareholders. Sambhv Steel competes with listed players such as APL Apollo Tubes, Hariom Pipes, Hi-Tech Pipes, JTL Industries, Rama Steel Tubes, and Surya Roshni.