Sambhv Steel Tubes IPO Fully Subscribed, Oversubscribed 3.32 Times by Final Day; Retail and NII Segments Lead Demand

Chhattisgarh-based Sambhv Steel Tubes’ ₹540-crore IPO concluded on a strong note, with the public issue fully subscribed and receiving robust investor interest by the final day of bidding on June 27. The initial sluggish response from investors gave way to a sharp uptick in participation, propelling the overall subscription to 3.32 times the offer size.

Sambhv Steel IPO Subscription Details

According to the latest data from the National Stock Exchange (NSE), the IPO garnered bids for approximately 16.34 crore shares against 4.92 crore shares on offer, highlighting strong demand across segments.

• Non-Institutional Investors (NII): The NII portion led the subscription frenzy, with bids exceeding 7.56 times the reserved quota, signaling heightened interest from high-net-worth individuals and corporates.
  
• Retail Individual Investors (RII): Retail participation was also robust, with their segment subscribed 3.07 times, reflecting solid confidence among small investors.
  
• Employee Quota: The portion reserved for employees saw a subscription of 2 times, showing decent participation from Sambhv Steel’s workforce.
  
• Qualified Institutional Buyers (QIBs): In contrast, the QIB segment lagged with only 61% subscription, indicating cautious institutional sentiment.
  

Earlier on Day 2 of the IPO, the overall issue had already crossed the full subscription mark with bids amounting to 1.76 times the offer size.

Sambhv Steel Tubes IPO GMP Today

Market observers tracking the grey market premium (GMP) noted that Sambhv Steel Tubes IPO was commanding a GMP of around ₹30-35 per share on Friday morning. This premium suggests an estimated listing price in the range of ₹155-160 per share, assuming the issue price is at the upper end of the price band. A healthy GMP generally reflects strong investor appetite and positive sentiment in the unofficial market ahead of the stock’s debut on the bourses.

Sambhv Steel Tubes: Company Background and IPO Details

Founded in Chhattisgarh, Sambhv Steel Tubes specializes in manufacturing steel pipes and tubes used in a variety of industries, including infrastructure, construction, and engineering. The proceeds from the IPO are expected to be utilized towards expanding manufacturing capacities, repayment of certain borrowings, and general corporate purposes.

The IPO consisted of a fresh issue aggregating up to ₹540 crore. The price band for the IPO was fixed at ₹120-125 per share, with a lot size of 120 shares, making it accessible for retail investors.

What’s Next?

With oversubscription across retail and NII categories and a moderate GMP in the grey market, Sambhv Steel Tubes’ shares are likely to list with positive momentum. The final allotment of shares is expected to be completed in the next few days, with refunds and credits to demat accounts following shortly after.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. IPO investments are subject to market risks. Please consult your financial advisor before making investment decisions.