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19 Nov 2024
Sambhv Steel Tubes, a key manufacturer of electric resistance welded (ERW) steel pipes and the structural tubes in India, has filed the draft DRHP with SEBI to raise ₹550-Crore via IPO.
The IPO consists of a mix of ₹400 Crore worth of fresh equity shares issued and ₹100 Crore worth offer-for-sale of shares by the promoters. The papers were filed on Monday, as per the reports.
Proceeds of the fresh issue will be used for making debt payments and for some general corporate purposes.
According to the Crisil report, domestic steel pipes and tubes demand is expected to have increased at a CAGR of 5-6%, amounting to 12.50-13.50 million tonnes per annum (MTPA) in FY25 from FY19’s 8.8 MTPA.
The growth has been led by some government initiatives for augmenting the urban structural infrastructure for infusing the investments within the oil and gas sector.
The report further added that moving forward, the domestic steel pipe demand will increase to approximately 18.50-20.50 MTPA in FY29 (8-9% CAGR), with the FY25 and FY29 periods being on a high base.
The book-running lead managers to the issue are Nuvama Wealth Management Ltd & Motilal Oswal Investment Advisors Ltd.
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