The IPO of Sambhv Steel Tubes Ltd has received a decent response from investors, with the issue being subscribed 1.76 times by the end of Day 3. The offering saw strong interest from retail and HNI segments, while institutional participation remained modest.
The ₹154.59 crore public issue, entirely a fresh issue of equity shares, was priced in the band of ₹93–₹97 per share. The company plans to use the proceeds to fund working capital requirements, equipment purchases, and general corporate purposes.
On Day 2, the IPO had been subscribed 84%, indicating pickup in demand on the final day. According to market sources, the grey market premium (GMP) hovered around ₹5–₹7 suggesting a mildly positive listing sentiment, but not a euphoric debut.
Sambhv Steel Tubes is a Gujarat-based manufacturer specializing in mild steel and galvanized pipes, with applications across construction, infrastructure, and energy sectors. The company reported strong revenue growth in recent years, with FY23 revenue of ₹460 crore and PAT of ₹21.7 crore.
Analysts say the IPO valuation seems reasonable compared to peers, though the low GMP reflects broader market caution amid recent volatility. Investors with a long-term view and appetite for SME exposure may find the fundamentals attractive, but short-term gains could be limited.
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