Scoda Tubes Limited is an established Indian manufacturer specializing in stainless steel tubes and pipes with over 14 years of industry experience. The company’s product portfolio is segmented into two broad categories: seamless tubes/pipes and welded tubes and pipes. Their offerings cover five main product lines: stainless steel seamless pipes, seamless tubes, seamless “U” tubes, instrumentation tubes, and welded tubes including welded “U” tubes. These products cater to diverse industrial applications, reflecting the company’s broad technical expertise in the stainless steel tubes market.

Details of the IPO
Scoda Tubes is launching a Book Built Issue (BBI) IPO with a fresh issue of 157.14 lakh equity shares, aggregating to a total issue size of ₹220 crore. The IPO opens for subscription on May 28, 2025, and closes on May 30, 2025. The allotment is expected to be finalized by June 2, 2025 (Monday), and the shares are tentatively scheduled to be listed on the BSE and NSE on June 4, 2025.

The price band for the IPO is fixed between ₹130 to ₹140 per share, with the company’s market capitalization at the upper price band expected to be around ₹838.73 crore. The minimum lot size for investors is 100 shares, making the minimum investment for retail investors ₹14,000, whereas High-Net-Worth Individuals (HNIs) need to apply for a minimum of 15 lots (1,500 shares), amounting to ₹2,10,000.

The lead book running manager for the issue is Monarch Networth Capital Limited, and the registrar is MUFG Intime India Private Limited.

Grey Market Premium (GMP) Insights
As of May 23, 2025, the Grey Market Premium (GMP) for Scoda Tubes IPO stands at ₹10, which suggests potential listing gains of about 7.41%. However, it is important to note that GMP trading is unofficial and occurs in unregulated markets. Therefore, GMP serves only as an educational indicator rather than a definitive price predictor. Investors should not rely solely on GMP for decision-making.

IPO Allotment Status and How to Check
The allotment for Scoda Tubes IPO will be finalized on June 2, 2025. Investors can check the allotment status online by visiting the registrar’s website. To check allotment status:

1. Navigate to the IPO allotment status page on the registrar’s portal.

2. Select “Scoda Tubes Limited IPO” from the list of IPOs.

3. Enter your application number, PAN, or DP Client ID.

4. Submit the details to view allotment results.

Financial Performance and Growth Trajectory
Scoda Tubes has demonstrated consistent growth in revenues and profitability over the last few years:

• Revenue from operations grew from ₹1,950.53 million in FY22 to ₹4,024.88 million in FY24.

• EBITDA surged from ₹110.14 million in FY22 to ₹614.18 million in FY24.

• Profit After Tax increased from ₹16.36 million in FY22 to ₹183 million in FY24, with a further rise to ₹249.14 million for the period ending December 31, 2024.

This strong upward trajectory highlights Scoda Tubes’ operational efficiency and expanding market footprint.

Key Valuation Metrics

• Pre-issue EPS for FY24 is ₹4.60, with post-issue EPS estimated at ₹3.05.

• Pre-issue P/E ratio stands at 30.43x; post-issue P/E ratio is projected at 45.83x, compared to the industry average P/E of 31x.

• The company’s Return on Capital Employed (ROCE) for FY24 is 15.92%, and Return on Equity (ROE) is 28.77%.

• Annualized EPS based on recent financials is ₹8.10 with a P/E ratio of 17.26x, indicating the IPO is reasonably priced relative to growth potential.

Promoters and Management Expertise
The promoters of Scoda Tubes — Samarth Patel, Jagrutkumar Patel, Ravi Patel, Saurabh Patel, and Vipulkumar Patel — collectively bring over 8 years of experience each in the stainless steel tubes and pipes sector. Their expertise spans marketing, procurement, finance, and customer relationship management, contributing to the company’s steady growth.

Use of IPO Proceeds
The net proceeds from the IPO are intended to be used for:

1. ₹769.90 million for capital expenditure to expand production capacity of seamless and welded tubes and pipes.

2. ₹1,100 million to fund incremental working capital requirements.

3. General corporate purposes.

Investment Outlook and Recommendation
Considering the steady financial performance, industry positioning, and current Grey Market Premium, Scoda Tubes IPO may present a potentially rewarding opportunity for investors seeking listing gains. However, due to the relatively higher post-issue P/E ratio compared to the industry, risk-averse investors should carefully evaluate the company’s growth prospects and market conditions before investing.

The Upcoming IPOs in this week and coming weeks are 3B Films, N R Vandana Tex Industries, Scoda Tubes,Neptune Petrochemicals, Astonea Labs, Nikita Papers, Prostarm Info Systems, Victory Electric Vehicles International, Blue Water Logistics, Wagons Learning..

The Current active IPO are Aegis Vopak Terminals, Schloss Bangalore, Unified Data - Tech Solutions.

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