Sambhv Steel Tubes Shares Jump 8% on Expansion Plans

Steel Tubes shares jumped 8.3% on September 21, extending their two-day rally to 24%, as heavy trading volumes and the company’s ₹100-crore fundraise and expansion plans drew investor attention. More than 2.8 crore shares changed hands on the NSE by around 10:15 am, compared with its 20-day average volume of about 28 lakh shares. The company has proposed a preferential issue of 86.95 lakh fully convertible equity warrants at ₹115 each, which is expected to raise around ₹100 crore. Sambhv Steel Tubes has clarified that the issue will not change control of the company or exceed 5% of the post-issue fully diluted share capital. The funds are planned to support capacity expansion, working capital and investment in its wholly owned subsidiary. The fundraise is part of a larger expansion strategy, with the company targeting an increase in finished-product capacity from 0.68 million tonnes per annum to more than 2 million tonnes by 2030. Its Kesda greenfield project and Kuthrel Unit 2 expansion are targeted for commissioning in Q4 FY27. In Q1 FY27, the company reported ₹732 crore revenue, ₹100 crore EBITDA and ₹56 crore net profit, while sales volumes increased 16% year-on-year.