Sambhv Steel Tubes Plans ₹100 Crore Fundraise Via Preferential Warrants
Sambhv Steel Tubes Limited (NSE: SAMBHV, BSE: 544430) has taken a significant step to strengthen its financial position after its Board of Directors approved a preferential issue of fully convertible equity warrants to raise nearly ₹100 crore. The decision was taken at the board meeting held on July 15, 2026, subject to shareholder approval.
Under the approved proposal, the company will issue up to 86,95,400 fully convertible equity warrants with a face value of ₹10 each at an issue price of ₹115 per warrant, including a premium of ₹105. The total fundraising through this preferential allotment is expected to be approximately ₹99.99 crore.
Preferential Issue Details
Each warrant will be convertible into one equity share of the company and can be exercised within 18 months from the date of allotment, in accordance with SEBI regulations.
Key Highlights
- Instrument: Up to 86,95,400 Fully Convertible Equity Warrants
- Issue Price: ₹115 per warrant
- Face Value: ₹10 per warrant
- Premium: ₹105 per warrant
- Total Fundraise: Approximately ₹99.99 crore
- Conversion Period: Within 18 months from the date of allotment
Promoters and Investors to Participate
The preferential issue will be subscribed by both promoter group entities and select non-promoter investors, reflecting confidence in the company’s long-term growth strategy.
Promoter Group Allottees:
- Anjaneya Minerals Private Limited
- Suresh Kumar Goyal
- Vikas Kumar Goyal
Non-Promoter Investors:
- Bhavesh Khetan
- Bikash Agrawal
- Saurabh Patil
- Anu Garg
The participation of existing promoters alongside external investors indicates continued support for the company’s expansion plans and future prospects.
Shareholders’ Approval Required
The proposal will be placed before shareholders for approval at the company’s First Extraordinary General Meeting (EGM) for FY2026-27, scheduled for August 10, 2026.
The Board has also appointed Mr. Rohtash Kumar Agrawal as the Scrutinizer to oversee the e-voting process and ensure a transparent voting mechanism.
Strengthening Growth Plans
While the company has not disclosed the exact deployment of the proceeds, capital raised through preferential issues is generally utilized for purposes such as business expansion, capacity enhancement, working capital requirements, debt reduction, or other strategic corporate initiatives.
The proposed ₹100 crore capital infusion is expected to enhance Sambhv Steel Tubes’ financial flexibility as it pursues growth opportunities in the steel tubes and pipes segment. Market participants will now watch the outcome of the upcoming EGM and the company’s future plans for deploying the fresh capital.