Sambhv Steel Tubes clarifies ₹115 issue price for 8.7m FCEWs
- Sambhv Steel Tubes proposes preferential issue of 8,695,400 FCEWs at ₹115 each
- Actual 90-day VWAP is ₹112.18 and 10-day VWAP is ₹114.33, correcting rounded figures
- Company confirms issue price remains unchanged at ₹115 per warrant
- Transaction does not trigger Regulation 166A as it involves less than 5% dilution
*this image is generated using AI for illustrative purposes only.
Sambhv Steel Tubes Limited clarified the pricing details of its proposed preferential issue of 8,695,400 fully convertible equity warrants (FCEWs). The company confirmed the issue price remains at ₹115 per warrant, addressing observations raised by the National Stock Exchange regarding valuation metrics in its Extra-Ordinary General Meeting notice.
Pricing Clarifications
The Mumbai-based steel manufacturer filed an in-principle application with stock exchanges for the preferential allotment of FCEWs carrying a face value of ₹10 each. The warrants are priced at a premium of ₹105, resulting in the total issue price of ₹115.
In response to NSE queries, Sambhv Steel provided specific corrections to the Volume Weighted Average Price (VWAP) figures disclosed in its July 16, 2026, EGM notice. The company stated that the actual 90-day VWAP was ₹112.18, which had been rounded to ₹112 in the notice. Similarly, the 10-day VWAP was ₹114.33, rounded to ₹114. The firm emphasized that these values were determined in accordance with applicable pricing methodologies and that the final issue price is unchanged.
| Metric | Disclosed Value | Actual Value | Status |
|---|---|---|---|
| 90-day VWAP | ₹112 | ₹112.18 | Rounded |
| 10-day VWAP | ₹114 | ₹114.33 | Rounded |
| Issue Price | ₹115 | ₹115 | Unchanged |
Regulatory Compliance
Sambhv Steel also addressed references to Regulation 166A of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, cited in the EGM notice. The company clarified that this regulation is not applicable to the current transaction. The proposed allotment does not result in a change of control and does not exceed 5% of the post-issue fully diluted share capital.
The clarification was issued pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulation, 2015. Niraj Shrivastava, Company Secretary and Compliance Officer, signed the disclosure on September 17, 2026.
Historical Stock Returns for Sambhv Steel Tubes
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.54% | -1.03% | +6.63% | +48.09% | +7.46% | +32.28% |
How might the successful completion of this preferential allotment impact Sambhv Steel's debt-to-equity ratio and overall capital structure?
What strategic projects or capacity expansions is the company likely to fund with the proceeds from these fully convertible equity warrants?
Could the issuance of FCEWs lead to significant dilution for existing shareholders once conversion occurs, and how does management plan to mitigate this concern?
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