Sambhv Steel Tubes Limited is gearing up for its initial public offering (IPO), aiming to raise a substantial ₹540 crore. The company has submitted a draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) as part of this significant financial move. The IPO comprises a fresh issue of equity shares valued at ₹440 crore and an offer for sale (OFS) from existing shareholders amounting to ₹100 crore, indicating a robust confidence from the company and its stakeholders.
IPO Structure and Use of Proceeds
The Sambhv Steel Tubes IPO will be a fully book-built offering, where each equity share carries a face value of ₹10. While the exact price band has not yet been revealed, it will be established in coordination with the book-running lead managers. The raised funds from the fresh issue are earmarked for various purposes, including working capital requirements, general corporate spending, and supporting the company’s strategic growth initiatives, according to the DRHP.
Investor Allocation Breakdown
The IPO will cater to a diverse range of investors with specific allocation percentages. Not more than 50% of the total offering will be reserved for qualified institutional buyers (QIBs), ensuring institutional backing. Additionally, at least 15% is set aside for non-institutional investors (NIIs), while 35% will be allocated for retail individual investors (RIIs), fostering a community-oriented investment approach.
Offer for Sale Details
The offer for sale component of the IPO includes shares from existing shareholders. Notably, prominent promoters Shashank Goyal and Rohit Goyal each plan to divest shares valued at ₹10 crore. Other promoter group members, Kaushlya Goyal and Harsheet Goyal, will also offload shares worth ₹10 crore each. Meanwhile, Rinku Goyal will offer a significant total of ₹60 crore in shares, reflecting strong insider confidence in the company’s future prospects.
Company Background
Sambhv Steel Tubes Limited was originally incorporated as ‘Sambhv Sponge Power Private Limited’ on April 24, 2017. To better align its name with its primary business focus, the company later rebranded to ‘Sambhv Steel Tubes Private Limited’. In 2024, it transformed into a public limited company, officially adopting the name Sambhv Steel Tubes Limited. The company’s registered office is situated at Harshit Corporate, Amanaka, Raipur, Chhattisgarh, a strategic location conducive to its operational needs.
Managing Partners
For this IPO, esteemed firms such as Nuvama Wealth Management Limited and Motilal Oswal Investment Advisors Limited have been appointed as book-running lead managers, ensuring a professional approach to the IPO process. Additionally, KFin Technologies Limited is onboard as the registrar to the offer, facilitating a seamless bidding experience for potential investors.
