Sambhv Steel Tubes shares pegged to gain up to 18% on market debut tomorrow; all you need to know

Mumbai, July 1, 2025 – Sambhv Steel Tubes Ltd., a key player in the steel pipe and tube manufacturing industry, is set to make its debut on the Indian stock exchanges tomorrow, July 2, 2025. Market experts and brokerage firms anticipate a premium listing, with projections suggesting the stock could open at up to 18% above its issue price, driven by strong fundamentals, robust order book, and favorable sentiment in the infrastructure and construction sectors.

IPO Overview: Strong Response from Investors

Sambhv Steel Tubes' initial public offering (IPO) received an overwhelming response from investors. The ₹200 crore issue was subscribed 17.4 times overall, with the retail portion subscribed 9.6 times, non-institutional investors 22.1 times, and qualified institutional buyers (QIBs) 20.8 times. The company had set the price band at ₹85-89 per share.

The IPO proceeds are earmarked for capacity expansion, debt repayment, and working capital requirements. The steel tube maker, with its manufacturing facility in Gujarat, plans to enhance its installed capacity by 30% over the next 18 months to meet rising domestic and international demand.

Listing Gains: What Analysts Expect

Analysts anticipate a robust listing for Sambhv Steel Tubes, backed by its healthy financials and growth prospects in the infrastructure and real estate sectors.

“Given the strong investor demand, lean valuation, and an improving outlook for steel tube demand in India, we expect Sambhv to list at a 10-18% premium over its issue price,” said Anuj Rathi, Senior Analyst at Angel One. “Its EBITDA margins of over 12% and return ratios above 18% make it an attractive bet in the mid-cap manufacturing segment.”

According to Geojit Financial Services, “The company’s focus on high-margin value-added products like galvanised and pre-fabricated tubes, along with export potential to the Middle East and Africa, gives it an edge over peers.”

Business Profile: Riding the Steel Demand Wave

Founded in 2009, Sambhv Steel Tubes has established itself as a niche player in the ERW (Electric Resistance Welded) and precision tube segments. The company caters to industries ranging from construction and infrastructure to agriculture, automobiles, and oil & gas.

With India witnessing a massive capex cycle in infrastructure and housing, demand for structural steel pipes and tubes is expected to rise sharply. Sambhv’s strategic location near key ports and raw material suppliers offers logistics efficiency and pricing competitiveness.

In FY24, the company reported revenue of ₹645 crore with a net profit of ₹48 crore, marking a 24% year-on-year growth in earnings. Exports contributed to 22% of its total revenue, with new orders secured from UAE and Kenya in the last quarter.

Peer Comparison: How Sambhv Stands

In comparison to listed peers like APL Apollo, Hi-Tech Pipes, and Surya Roshni, Sambhv Steel Tubes comes at a relatively modest valuation. The IPO valued the company at a P/E multiple of around 13x, whereas its larger peers trade at multiples ranging from 17x to 24x.

This discount, coupled with growth visibility, has made Sambhv an attractive proposition for both institutional and retail investors looking for exposure in the steel products segment without the premium valuation.

Market Context: Tailwinds Favoring the Sector

India’s steel pipe and tube market is expected to grow at a CAGR of 7-8% over the next five years, aided by higher infrastructure spending, replacement demand in the oil & gas sector, and increased preference for pre-fabricated steel structures.

The government’s focus on ‘Make in India’ and the Production Linked Incentive (PLI) scheme for specialty steel are additional catalysts likely to benefit mid-cap players like Sambhv.

“The sector is in a sweet spot. Capacity constraints in larger players are giving room for smaller yet efficient companies like Sambhv to gain market share,” said Varsha Mehta, an industrial analyst at JM Financial.

Investor Outlook: Long-Term Value or Short-Term Play?

While listing gains appear promising, long-term investors are advised to watch key execution metrics—such as capacity expansion, margin stability, and debt reduction—in the coming quarters.

“For those with a high-risk appetite and a 2–3-year horizon, Sambhv offers significant upside, especially as it moves into value-added products and strengthens exports,” said Rakesh Vaidya, Portfolio Manager at Ventura Securities.

Retail investors participating in the IPO are advised to track the listing closely and decide on partial profit booking depending on market sentiment on debut day.

As Sambhv Steel Tubes steps into the public market, its debut is being closely watched not only as a reflection of investor sentiment in mid-cap industrials but also as a barometer for the next wave of manufacturing-focused IPOs. With strong fundamentals, competitive pricing, and sectoral tailwinds, Sambhv appears poised for a promising start.