Stories
Sambhv Steel Tubes Shares Soar 24% in Two Days on Expansion Plans, Fundraise
- •Sambhv Steel Tubes shares jumped over 8% on Monday, extending a two-day surge to 24% with heavy trading volumes.
- •The rally follows investor focus on the company's expansion plans and a proposed Rs 100-crore fundraise via a preferential issue of equity warrants.
- •Sambhv Steel Tubes aims to increase its total finished-product capacity from 0.68 million tonnes per annum to over 2 million tonnes by 2030, with significant brownfield and greenfield projects underway.
- •The company reported its highest-ever quarterly revenue, EBITDA, and net profit in Q1 FY27, with revenue at Rs 732 crore and net profit at Rs 56 crore.
- •Management anticipates substantial capital expenditure and increased borrowings, with term debt projected to reach Rs 800-850 crore by the end of FY27, and expects some near-term moderation in Q2 due to softer prices and increased import competition.
Key Questions Answered
Sambhv Steel Tubes shares jumped on heavy trading volumes amid strong investor attention on the company's expansion plans and a proposed Rs 100-crore fundraise through a preferential issue of equity warrants.
The company proposed a preferential issue of 86.95 lakh fully convertible equity warrants at an unchanged price of Rs 115 apiece to raise about Rs 100 crore. The promoter family and management will participate, and the allotment will not exceed 5 percent of the post-issue fully diluted share capital or result in a change in control.
Sambhv Steel Tubes aims to scale its total finished-product capacity from 0.68 million tonnes per annum to over 2 million tonnes by 2030. Projects like the Kesda greenfield development and Kuthrel Unit 2 expansion are scheduled for commissioning in Q4 FY27 to support this growth.
