Malabar India Fund Limited has significantly increased its shareholding in Scoda Tubes Limited by participating in the company's public issue anchor allotment. The acquisition has raised its ownership from 5.43 percent to 7.58 percent in the total equity share capital of the company.

This change has been disclosed in compliance with Regulation 29(2) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, and was filed on June 11, 2025.

Detailed Acquisition Overview

Before this transaction, Malabar India Fund Limited held 24,00,000 equity shares, accounting for 5.43 percent of the total share capital of Scoda Tubes. These shares carried full voting rights, and there were no encumbrances or other convertible instruments held.

Through the anchor allotment in a public issue on 27 May 2025, the fund acquired an additional 21,42,800 equity shares, pushing the total to 45,42,800 shares, now representing 7.58 percent of the total diluted share capital.

There were no shares encumbered, pledged, or held through warrants or convertible securities either before or after the acquisition.

Mode and Purpose of Acquisition

The shares were acquired through a public issue anchor allotment, a standard mechanism where qualified institutional buyers are allotted shares before the issue opens to the public. This kind of transaction is generally seen as a positive vote of confidence by institutional investors in the company’s future prospects.

The total equity share capital of Scoda Tubes Limited prior to this allotment was 4,41,94,700 shares. After the issue, it increased to 5,99,08,900 equity shares, each with a face value of Rs 10.

This increment reflects an expansion in capital base, signalling potential business expansion or strategic investments on the part of Scoda Tubes Limited.

Scoda Tubes Limited: Company Snapshot

Scoda Tubes Limited is a listed public company engaged in the manufacturing of tubes, pipes, and steel-related industrial products. It serves key sectors like oil and gas, infrastructure, automotive, and industrial engineering.

The company is listed on both BSE and NSE, and has been gradually building investor confidence through financial transparency, strategic funding, and a growing product line.

The latest preferential allotment resulting in this acquisition showcases the company’s ability to attract foreign institutional investors such as Malabar India Fund Limited, a fund managed from Mauritius known for value-driven investments in India.

Who is Malabar India Fund Limited

Malabar India Fund is a respected foreign institutional investor known for picking high-quality small and mid-cap companies with long-term growth potential. Despite not being part of the promoter or promoter group, its presence on the shareholding list of a company often sends a strong signal to the broader market.

Its increased stake in Scoda Tubes Limited is seen as a sign of confidence in the company’s financials, strategic direction, and future performance.

The SEBI-compliant disclosure, made by the company on June 11, includes all necessary information about the acquisition, capital change, and updated shareholding pattern.

Regulatory Compliance and Transparency

This acquisition is a textbook case of a transparent transaction as outlined under the SEBI (SAST) Regulations. As per Regulation 29, an investor acquiring more than 2 percent of a listed company’s voting rights is required to submit a formal disclosure to the stock exchanges and the company.

In this instance, the change in shareholding exceeded 2 percent, triggering a mandatory filing. The acquisition through public issue is clearly noted, and all figures related to voting rights, equity capital, and post-acquisition shareholding have been duly disclosed.

Such disclosures are vital for protecting investor interests and maintaining fair and efficient capital markets.

Impact on Investors and Market Sentiment

Institutional participation by a reputed fund such as Malabar India Fund often encourages further investor interest in the stock. This move is particularly relevant for retail and mutual fund investors, as it reflects validation from professional fund managers who invest based on extensive due diligence.

The increase in shareholding also brings with it long-term commitment, which could contribute to price stability, liquidity improvement, and positive perception in the market.

With the equity capital increasing, Scoda Tubes may deploy this funding for a variety of objectives — including capacity expansion, debt reduction, technology upgrades, or market expansion.

Future Outlook for Scoda Tubes

The infusion of capital and the inclusion of prominent institutional investors might be a precursor to broader operational developments. It may pave the way for strategic tie-ups, product diversification, or even entry into new geographical markets.

Scoda Tubes’ track record, now backed by long-term investors, could help the company achieve higher visibility among the investor community. This acquisition also improves governance standards due to increased institutional scrutiny.

In essence, this stake hike by Malabar India Fund may mark a new phase of growth and market recognition for Scoda Tubes Limited.

Conclusion

Malabar India Fund Limited’s acquisition of additional shares in Scoda Tubes Limited through anchor allotment in a public issue is a significant update in the company’s shareholding pattern. The move, which takes the fund’s stake to 7.58 percent, aligns with the broader trend of institutional interest in niche industrial manufacturers in India.

With the total equity share capital now standing at nearly 6 crore shares, the company appears well-capitalised to pursue its future goals. The transparent manner in which this acquisition has been disclosed reinforces market trust and upholds SEBI’s standards for shareholder communication.

This development not only strengthens Scoda Tubes’ capital structure but also positions it for increased investor engagement and long-term growth potential.

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