Sambhv Steel Tubes Files Draft IPO Papers For Mainboard Listing

Sambhv Steel Tubes Ltd. has filed its draft red herring prospectus with the Securities and Exchange Board of India for an initial public offering of shares worth up to Rs 540 crore. This comprehensive offering includes a fresh issue of equity shares aggregating up to Rs 440 crore and an offer-for-sale amounting to Rs 100 crore.

The company, promoted by Brijlal Goyal, Suresh Kumar Goyal, Vikas Kumar Goyal, Sheetal Goyal, Shashank Goyal, and Rohit Goyal, plans to utilise the net proceeds from the fresh issue primarily for the pre-payment or scheduled repayment of outstanding borrowings, which currently total Rs 536.23 crore. The estimated amount allocated for this purpose is Rs 390 crore. Additionally, the proceeds will be directed towards general corporate purposes.

The equity shares, with a face value of Rs 10 each, are proposed to be listed on the BSE and the National Stock Exchange of India. The bookrunning lead managers for this offering are Motilal Oswal Investment Advisors Ltd. and Nuvama Wealth Management Ltd., while KFin Technologies Ltd. will act as the registrar for the offer.

Sambhv Steel Tubes, established in 2018, specialises in the manufacturing of electric resistance welded steel pipes and structural tubes, holding a unique position as the only company in India with a single-location, backward-integrated manufacturing facility for these products. 

This integration allows the company to produce a wide range of offerings, including rust-resistant ERW black pipes and galvanised iron pipes, using intermediate products produced in-house.

The company’s extensive distribution network spans 15 states and one union territory, supporting various sectors such as housing, infrastructure, agriculture, telecommunications, and more. 

As of March 31, Sambhv's operational capacity has positioned it as one of the two primary manufacturers of ERW steel pipes and tubes in India, particularly utilising narrow-width hot-rolled coils, according to the DRHP.