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Salient features of the IPO:

• Sambhv Steel Tubes Ltd. (SSTL), the backward-integrated manufacturers of electric resistance welded (“ERW”) steel pipes and structural tubes (hollow section), is coming up with an IPO to raise around Rs. 540.0cr, which opens on 25th Jun and closes on 27th Jun 2025. The price band is Rs. 77 - 82 per share.

• This public issue is a combination of fresh issue (Rs. 440.0cr) and OFS (Rs. 100.0cr). From the fresh issue net proceeds, the company will be utilizing Rs. 390.0cr for Pre-payment or scheduled re-payment of a portion of certain outstanding borrowings availed by the company. Residual proceeds will be used for general corporate purposes.

• Some of the promoter & promoter group (P&PG) entities are participating in the OFS and offloading 0.793cr equity shares. Post-IPO, the P&PG and public shareholders will have 56.14% and 43.86% stake in the company, respectively

Key competitive strengths:

• A single location backward integrated facility in India

• Strategically located manufacturing plants resulting in operational efficiencies

• Strong process innovation and execution capabilities allowing SSTL to produce value-added products

• Wide-spread well connected distribution network across India

• Well-positioned to take advantage of the growing demand for quality ERW steel pipes and tubes

• Track record of healthy financial performance

• Experienced promoters and management team with vast experience in the steel industry

Risk and concerns:

• Under-utilization of manufacturing capacities

• High dependence on ERW pipe sale

• Geographical concentration in North and West India

• Raw material price volatility or supply disruptions

• Adverse macroeconomic and geopolitical conditions • Competition

Below are the key highlights of the company:

• Globally, steel pipes and tubes are classified into welded, seamless, and hollow section pipes. As of 2022, India’s share in the industry is about 5%. Total global production declined over 5% in 2022 to 132MT due to geopolitical supply disruptions.

• Domestic steel pipe and tube demand is estimated to grow from 8.8 MTPA in FY19 to 12.5–13.5 MTPA in FY25 at a 5–6% CAGR, and further reach 18.5–20.5 MTPA by FY29 at a CAGR of 8–9%, led by structural infrastructure and irrigation, which are expected to account for 50–55% of total demand.

• Incorporated on 24 th Apr, 2017, SSLT is one of the key manufacturers of ERW steel pipes and structural tubes (hollow section) in India in terms of installed capacity as of FY24. Its backward integration processes allows it to manufacture a range of finished products including ERW black pipes and tubes, pre-galvanized (GP) pipes, Cold Rolled Full Hard Pipes and galvanized iron pipes and steel door frames, using intermediate products such as sponge iron, blooms/slabs and hot rolled coil, cold rolled coil (mild steel) and GP coils which are manufactured in-house.

• The company is one of the two players in India, manufacturing ERW steel pipes and tubes (along with hollow section pipes and tubes) using narrow-width HR coil, as of 9MFY25. Its products are rust-resistant and tailored to meet specific market requirements, ensuring wide application across multiple sectors including housing and infrastructure, water transportation, agriculture, automobile, telecommunications, oil and gas, engineering, solar energy, fire-fighting systems, and for support structures of conveyors.

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SEBI Registration no.: INZ 000160131