Scoda Tubes Limited, a leading Indian manufacturer of stainless steel tubes and pipes, is set to launch its Initial Public Offering IPO with a fresh issue amounting to ₹220 crore. The IPO opens for subscription on May 28 2025 and closes on May 30 2025. The company will offer 157.14 lakh equity shares within a price band of ₹130 to ₹140 per share. The minimum lot size is 100 shares requiring retail investors to invest a minimum of ₹14,000 while High Net Worth Individuals HNIs must apply for at least 15 lots or 1,500 shares amounting to ₹2,10,000.

Company Overview
Scoda Tubes is an experienced player in the stainless steel pipes and tubes industry with over 14 years of operational expertise. Their product portfolio is broadly divided into two categories seamless and welded tubes and pipes. The company offers five distinct product lines stainless steel seamless pipes, seamless tubes, seamless U tubes, instrumentation tubes and welded tubes including welded U tubes. These products cater to various industrial applications requiring durable and corrosion resistant stainless steel components.

The promoters of Scoda Tubes including Samarth Patel, Jagrutkumar Patel, Ravi Patel, Saurabh Patel and Vipulkumar Patel bring an average experience of approximately 8 years in the stainless steel sector. Their collective expertise covers marketing, procurement, finance, accounting and customer relationship management providing strong leadership to the company’s growth strategy.

Financial Performance
The company has demonstrated consistent financial growth over recent years. Revenue from operations increased from ₹1,950.53 million in fiscal 2022 to ₹4,024.88 million in fiscal 2024. EBITDA similarly rose sharply from ₹110.14 million in 2022 to ₹614.18 million in 2024. Profit After Tax PAT showed impressive growth from ₹16.36 million in 2022 to ₹183 million in 2024, further rising to ₹249.14 million in the nine months ended December 31 2024.

Key financial ratios indicate a solid performance. The pre issue Earnings Per Share EPS for FY24 is ₹4.6 while the post issue EPS is estimated at ₹3.05. The pre issue Price to Earnings PE ratio stands at 30.43 times slightly above the industry average of 31x with a post issue PE of 45.83x. The company also reports a Return on Capital Employed ROCE of 15.92 percent Return on Equity ROE of 28.77 percent and Return on Net Worth RoNW of 28.77 percent showcasing efficient use of capital and shareholder equity. The annualised EPS based on the latest financials is ₹8.10 with a corresponding PE of 17.26x suggesting the IPO is priced fairly in comparison with current earnings.

IPO Details and Market Outlook
The IPO is a Book Built Issue managed by Monarch Networth Capital Limited as the Book Running Lead Manager with MUFG Intime India Private Limited acting as the registrar. The market capitalisation of Scoda Tubes post IPO based on the upper price band of ₹140 will be approximately ₹838.73 crore.

The Grey Market Premium GMP for the IPO stands at ₹10 indicating potential listing gains of about 7.41 percent. However investors should note that GMP is an informal indicator and does not guarantee actual listing price or returns. The GMP depends heavily on unregulated demand supply forces and should be treated with caution.

The allotment of shares is expected to be finalised by June 2 2025 with shares listing on the Bombay Stock Exchange BSE and the National Stock Exchange NSE tentatively on June 4 2025.

Conclusion
Scoda Tubes Limited’s IPO presents an opportunity for investors to participate in a company with a strong track record of financial growth and solid operational experience in the stainless steel tubes sector. The IPO is fairly priced based on earnings and industry comparisons. The product portfolio covers a broad range of stainless steel tube applications supported by a capable management team with deep industry knowledge. Investors with a higher risk appetite may consider applying for the IPO anticipating potential listing gains. However all investors should assess their investment goals and risks carefully.

The Upcoming IPOs in this week and coming weeks are Scoda Tubes,Neptune Petrochemicals, Aegis Vopak Terminals, Schloss Bangalore, Astonea Labs, Nikita Papers, Prostarm Info Systems, Victory Electric Vehicles International, Blue Water Logistics, Wagons Learning.

The Current active IPO are Unified Data - Tech Solutions.

The Closed IPOs are Borana Weaves, Dar Credit and Capital, Belrise Industries.