Sambhv Steel Tubes Shares Rally 24% In Two Days As ₹100 Crore Fundraise Draws Attention

Sambhv Steel Tubes shares jumped 8.3% to ₹159.8 in the morning trade on Monday, 21 September 2026, taking the stock’s two-day gain to about 24%.

The sharp move came with a major rise in trading activity as investors tracked the company’s proposed ₹100-crore fundraise and its plans to expand production capacity.

The Sambhv Steel Tubes share price had gained 14% on Friday. By 11:44 AM on Monday, the stock was trading at ₹154.63, up 4.78%.

The stock has gained nearly 66% so far in 2026, while the Nifty 50 has declined 10.7% over the same period.

What Is Driving The Rally?

The latest jump follows clarifications issued by Sambhv Steel Tubes regarding its proposed preferential issue of 86.95 lakh fully convertible equity warrants at ₹115 each. The issue is expected to raise around ₹100 crore.

The company said the issue price will remain unchanged. It also clarified that the proposed allotment will not lead to a change in control and will account for less than 5% of the post-issue fully diluted share capital.

The funds are expected to support capacity expansion and working capital, while part of the money will also be invested in the company’s wholly owned subsidiary.

How Large Is Sambhv Steel Tubes’ Expansion Plan?

The expansion aims to increase finished-product capacity from 0.68 million tonnes per annum to more than 2 million tonnes by 2030.

Its Kuthrel brownfield project has already doubled stainless-steel CR coil capacity to 116,000 tonnes annually. The Kesda greenfield project and Kuthrel Unit 2 expansion are expected to be commissioned in Q4 FY27. The first phase of Kesda will add 360,000 tonnes of capacity.

The expansion, however, will require significant borrowing. Management expects term debt to reach ₹800-850 crore and working-capital debt to touch ₹200-300 crore by the end of FY27.

Operationally, the company reported its highest-ever quarterly revenue, earnings before interest, taxes, depreciation, and amortisation (EBITDA) and net profit in Q1 FY27. Revenue stood at ₹732 crore, EBITDA at ₹100 crore and net profit at ₹56 crore.

For FY27, management expects revenue growth of 10-15%. It has also flagged softer prices and slower demand in Q2, along with possible pressure on stainless-steel margins from higher imports.

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