Sambhv Steel Tubes shareholders approved a special resolution on August 10, 2026, to issue fully convertible equity warrants on a preferential basis, with the resolution passing with 99.99% support involving 173.6 million votes. According to the company's announcement, the voting process saw robust participation with 58.94% of outstanding shares as of the record date of August 3, 2026. The resolution required approval from disinterested shareholders as promoters were interested in the agenda, with promoters voting unanimously in favour while public shareholders also showed strong backing. Promoters held 165.3 million shares and cast 139.1 million votes in favour, representing an 84.15% participation rate among their holdings, while public non-institutional shareholders cast 26 million votes with only 1,620 against.
Sambhv Steel Tubes shares jumped 8.3% to ₹159.8 on Monday, extending their sharp rally from the previous session to 24% in two days. According to reports from Moneycontrol, the stock was among the most actively traded on both NSE and BSE, with trading volumes surging to more than 2.8 crore shares compared with the stock's 20-day average volume of about 28 lakh shares. The stock has gained about 66% so far in 2026, significantly outperforming the Nifty 50's 10.7% decline. Latest data shows the stock has delivered strong returns of 25.38% over one month, 59.75% over six months, and 68.09% over one year, reflecting sustained investor confidence in the company's expansion plans.
The latest rally coincides with Sambhv Steel Tubes launching its ₹540.13 crore IPO on June 25, 2025, with shares set to list on July 2, 2025. The public cum offer for sale comprises 6.59 crore fresh shares with a minimum investment of ₹14,924. The IPO has received strong institutional response with QIB subscription at 62.32x, retail investors at 7.99x, and non-institutional investors at 31.82x on the final day. The company's market position is strengthened by its status as one of the key manufacturers of ERW steel pipes and structural tubes in India with a market share of approximately 2% in the domestic ERW pipe segment as of fiscal 2024.
The company's expansion includes a brownfield expansion of stainless-steel CR coil capacity at Kuthrel, which has already doubled capacity from 58,000 tonnes to 116,000 tonnes annually. According to Moneycontrol, the Kesda greenfield project will add 360,000 tonnes of capacity in the first phase, with management confident of beginning trial runs and production in Q4 FY27. The Kuthrel Unit 2 expansion is also targeted for commissioning in Q4 FY27. The company expects its stainless-steel coil capacity to rise to 476,000 tonnes per annum following these expansions.
The growth programme will involve substantial capital expenditure, with management expecting term debt to reach around ₹800-850 crore and working-capital debt ₹200-300 crore by the end of FY27. As reported by Moneycontrol, the company's current cost of debt stands at around 7.5-8%. Despite the expansion costs, Sambhv reported its highest-ever quarterly revenue, EBITDA and net profit in Q1 FY27, with revenue at ₹732 crore, EBITDA at ₹100 crore and net profit at ₹56 crore. Sales volumes rose 16% year-on-year, while volumes of value-added products increased 27%.
