Ahead of IPO, Sambhv Steel raises over Rs 161 crore from anchor investors

New Delhi, Jun 24 (PTI) Sambhv Steel Tubes on Tuesday said it has mobilised Rs 161.25 crore from anchor investors, a day ahead of the launch of its initial share sale for public subscription.

WhiteOak Capital Mutual Fund (MF), Motilal Oswal MF, Nuvama Asset Management, Astorne Capital VCC Arven, Citigroup Global Markets Mauritius, Nomura Singapore, Societe Generale, and BNP Paribas Financial Markets, among others have been allotted shares in the anchor round.

According to a circular uploaded on BSE's website, Sambhv Steel allocated over 1.96 crore equity shares to 19 entities at Rs 82 per equity share, which is the upper end of the IPO price band.

The Rs 540-crore initial public offering (IPO) will open for public subscription on June 25 and conclude on June 27. The price band has been set at Rs 77-82 per share for its issue.

The IPO is a mix of fresh issue of equity shares valued at Rs 440 crore and an offer for sale (OFS) of shares worth Rs 100 crore by promoters.

Proceeds from the fresh issue will be utilised for payment of debt and general corporate purposes.

Sambhv Steel is one of the key manufacturers of electric resistance welded (ERW) steel pipes and structural tubes (hollow section) in India in terms of installed capacity as of March 31, 2024.

According to a Crisil report, the demand for domestic steel pipes and tubes is expected to have grown at a compound annual growth rate (CAGR) of 5-6 per cent to 12.50-13.50 million tonne per annum (MTPA) in FY25 from 8.8 MTPA in FY19.

The growth was led by government initiatives to augment urban structural infrastructure and to infuse investments in the oil and gas sector.

Going forward, domestic steel pipe demand is projected to increase to 18.50-20.50 MTPA in FY29 at 8-9 per cent CAGR between FY25 and FY29 on a high base, the report added.

Nuvama Wealth Management and Motilal Oswal Investment Advisors are the book-running lead managers to the issue. Sambhv Steel Tubes is expected to list on the BSE and NSE on July 2. PTI HG HG ANU ANU