Sambhv Steel Tubes IPO makes stellar debut; shares list at 34% premium

Sambhv Steel Tubes made a strong debut on the stock exchanges today, after the successful completion of its ₹540 crore initial public offering (IPO). The stock listed at ₹110 on the NSE, marking a 34.15% premium over its issue price of ₹82. On the BSE, shares debuted slightly higher at ₹110.1, translating to a 34.27% gain.

The listing was better than D-Street expectations as the shares of pipes and tubes manufacturer were commanding a grey market premium (GMP) of ₹96 apiece, implying a 17.07% premium to the IPO price prior to debut.

Post listing, Sambhv Steel Tubes shares hit a high of ₹110.89 on the BSE and ₹111 on the NSE, while it touched a low of ₹96.17 and ₹96.25, respectively, on the bourses. At the time of reporting, the stock was trading at ₹99.48 on the BSE, up 21.3% over the IPO price, with a market capitalisation of ₹2,927.86 crore.

Sambhv Steel Tubes IPO, which opened for bidding between June 24-27, was subscribed 30.33 times. The public issue was booked 8.56 times in the retail category, 66.36 times in qualified institutional buyer (QIB) segment, while portion set aside for non-institutional investor (NII) was subscribed 33.88 times.

The shares were offered at a price band of ₹82 per share, while the lot size for an application was 182. The minimum application amount for retail investors was ₹14,014 for one lot and ₹1,94,012 for 13 lots, or 2,366 shares.

The issue was a combination of fresh issue of 5.37 crore shares worth ₹440 crore and offer for sale of 1.22 crore shares aggregating to ₹100 crore. The company intends to use capital raised from issuance of fresh equities to repay debt (₹390 crore) availed by the company, while the remaining fund will be used for general corporate purposes.

Formed in 2017, Sambhv Steel Tubes is a manufacturer of electric resistance welded (ERW) steel pipes and structural tubes (hollow section) in India. The company has manufacturing facility in Raipur, Chhattisgarh.

Meanwhile, HDB Financial Services also made its debut on the stock exchanges today, with its stock price listing at ₹835 on the BSE and NSE, up 12.84% over the issue price of ₹740 apiece. The listing was better than Street expectations as HDB Financial shares were commanding a grey market premium (GMP) of ₹65 ahead of its debut, indicating a likely listing around ₹805, up 8.8% over the IPO price. The NBFC arm of HDFC Bank raised ₹12,500 crore via IPO, which was the largest public issue since Hyundai Motor India’s ₹27,000-crore last year.

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