Sambhv Steel Tubes Limited
- Minimum Investment₹14,014
- Price Range₹77 - ₹82
- Issue Size₹540.00 Cr
- Lot Size182 shares
Proceeds of this IPO to be used for
Pre-payment or scheduled re-payment of a portion of certain outstanding borrowings availed by the company
General corporate purposes
Strengths & Weaknesses of Sambhv Steel Tubes Limited
Geographical advantage
Located near key raw material suppliers, the company sources iron ore from a "Navratna" public sector undertaking (PSU) known for producing India's highest grade of iron ore, allowing access to directly reduced calibrated lump ore (DRCLO) for their products. They also obtain coal from a "Maharatna" PSU through a major subsidiary, with mines just 250 kilometers from their Sarora (Tilda) facility
Distribution network
As of March 31, 2024, the company has 33 distinct distributors, with two distributors operating through six branches across 15 states and one union territory, totaling 39 in their network. Through these distributors, it supplies to original equipment manufacturers (OEMs) in various industries, including crane, tractor part, cultivator, and telecommunication tower manufacturing, showcasing their versatility and commitment to supporting diverse industrial applications
Strategic advantage
Steel pipes are used in various industries, with demand driven by government projects. Key sectors like water supply, sanitation, irrigation, and flood control will continue to boost demand, supported by initiatives like the Jal Jeevan Mission and Har Ghar Nal Yojana
Manufacturing capacity risks
Under-utilization of manufacturing capacities and ineffective use of expanded facilities could negatively impact the business, future prospects, and financial performance
Raw material cost
An increase in the cost or a shortfall in the availability of key raw materials like iron ore, coal, and mild steel scrap could materially impact the business, operational results, profitability, cash flows, and financial condition
Dependent on product sales
A substantial portion of their revenue comes from product sales, and a decline in demand could adversely affect the business, financial condition, operational results, and cash flows. Additionally, failure to diversify product offerings may hinder growth and negatively impact profitability
Financials
Earnings Per Share
No Data
Balance Sheet
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Cash Flow
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About Sambhv Steel Tubes Limited
- PromoterBrijlal Goyal
- PromoterSuresh Kumar Goyal
- PromoterVikas Kumar Goyal
- PromoterSheetal Goyal
- PromoterShashank Goyal
- PromoterRohit Goyal