Sambhv Steel Tubes shares made a stellar debut on Wednesday, July 2, 2025, listing with significant gains on both the BSE and NSE, despite a generally tepid broader market. On the BSE, the stock opened at Rs 110.1 per share, marking a premium of over 34 percent against its issue price of Rs 82. Similarly, on the NSE, it listed at Rs 110 apiece, reflecting a 34.15 percent premium, showcasing strong investor confidence from the outset.

The Rs 540 crore initial public offering (IPO) of Sambhv Steel Tubes, a prominent iron and steel products company, was open for subscription between June 25 and June 27. It garnered a robust response, achieving an impressive overall oversubscription of 28.46 times. Qualified Institutional Buyers (QIBs) led the subscription, oversubscribing their portion by 62.32 times, while non-institutional investors subscribed 31.82 times. The retail category, although subscribing the least, still saw a respectable 7.99 times oversubscription. The public issue comprised a fresh equity share issuance worth Rs 440 crore and an offer for sale (OFS) amounting to Rs 100 crore.

Ahead of its listing, Zee Business Managing Editor Anil Singhvi had projected the scrip of Sambhv Steel Tubes to debut in the range of Rs 95-100 against the Rs 82 issue price. He had also advised short-term investors to maintain a stop loss below Rs 90, citing the issue's strong reception with an expected oversubscription of around 30 times.

Sambhv Steel Tubes Ltd (SSTL), incorporated in 2017, specializes in the manufacturing of Electric Resistance Welded (ERW) steel pipes and structural tubes. Operating from its state-of-the-art facility in Sarora, Chhattisgarh, the company is recognized among the top in terms of installed capacity and stands out as one of only two Indian firms that utilize narrow-width HR coils for ERW production. Beyond ERW pipes, Sambhv also operates in the stainless steel coils sector, catering to a diverse array of industries including infrastructure, agriculture, automotive, and energy. As of December 31, 2024, the company's annual sales volume stood at 198,956 metric tonnes.

A key operational advantage for Sambhv Steel is its status as India’s sole single-location backward-integrated ERW pipe and steel tubes manufacturer. This integration allows it to produce sponge iron, hot rolled coils, and galvanized pipes all under one roof, providing significant operational and cost advantages within a highly competitive sector. Furthermore, the company benefits from its strategic proximity to major raw material sources, including coal and iron ore mines managed by public sector undertakings. With a widespread distribution network, Sambhv Steel services clients across 15 Indian states and has consistently reported revenue growth over the last three financial years due to its diversified product portfolio.

The strong performance of new listings like Sambhv Steel Tubes contrasted with the broader Indian benchmark indices, which extended their losses by mid-day on Tuesday, July 2. The BSE Sensex fell 168.95 points (0.20%) to 83,528.34, while the NSE Nifty 50 slipped 49.50 points (0.19%) to 25,492.30. Weakness across sectors such as FMCG, banking, media, oil & gas, and realty stocks contributed to the subdued broader market sentiment. However, the robust listing gains from newly public companies like HDB Financial Services (which opened with a 13% premium) and Sambhv Steel highlighted a continued strong streak in the primary market.

Other significant market movements on the day included Asian Paints shares dipping 1 percent following a Competition Commission of India (CCI) investigation into alleged anti-competitive practices, triggered by a complaint from Grasim Industries. IndusInd Bank stock fell 3 percent intraday after Goldman Sachs downgraded it to ‘sell,’ citing concerns over its weakening franchise and cutting EPS estimates. Conversely, Paras Defence rose 2 percent on news of a potential Rs 22 crore anti-drone system deal with a French firm, and Gabriel India shares were locked at a 20 percent upper circuit for a second consecutive session due to buzz around a major internal restructuring plan.

Analysts following Sambhv Steel’s issue attribute the stock's attractiveness in the medium to long term to its integrated operations, the rising demand for infrastructure, and its post-issue debt reduction strategy. The company had also successfully raised Rs 161 crore from anchor investors prior to its public offering, further bolstering investor sentiment. The allotment was finalized on June 30, with equity shares credited to demat accounts ahead of the listing, making Sambhv’s debut a closely watched barometer of investor appetite for midcap industrial plays amidst broader market volatility.