Scoda Tubes Limited, a reputed Indian manufacturer of stainless steel tubes and pipes with over 14 years of industry experience, has announced its initial public offering (IPO) scheduled to open for subscription on May 28, 2025, and close on May 30, 2025. The company is raising ₹220.00 Crores entirely through a fresh issue of 157.14 lakh equity shares to expand its business and meet working capital requirements.

Company Overview and Product Portfolio

Scoda Tubes specialises in manufacturing stainless steel seamless and welded tubes and pipes across five key product lines:

• Stainless steel seamless pipes

• Stainless steel seamless tubes

• Stainless steel seamless “U” tubes

• Stainless steel instrumentation tubes

• Stainless steel welded tubes and “U” tubes

These products cater to diverse industrial applications such as engineering, automotive, power, and instrumentation, showcasing the company's strong foothold in the stainless steel tubes sector.

IPO Details: Pricing, Lot Size & Market Cap

The price band for the Scoda Tubes IPO is fixed between ₹130 and ₹140 per equity share. The company’s market capitalization at the upper band price of ₹140 per share will be approximately ₹838.73 Crores. Investors can apply in multiples of the lot size of 100 shares, with a minimum retail investment of ₹14,000 and for High Net Worth Individuals (HNIs), a minimum application of 15 lots (1,500 shares) amounting to ₹2,10,000.

The shares will be listed on both BSE and NSE, with the allotment expected to be finalized on June 2, 2025, and tentative listing scheduled for June 4, 2025.

IPO Subscription & Lead Manager

MONARCH NETWORTH CAPITAL LIMITED is the Book Running Lead Manager for this IPO, and MUFG Intime India Private Limited is appointed as the Registrar.

Financial Performance Snapshot

Scoda Tubes has demonstrated consistent revenue growth and profitability over recent years:

The company’s Return on Capital Employed (ROCE) stands at 15.92% and Return on Equity (ROE) at 28.77% for FY24, indicating efficient capital management. The Earnings Per Share (EPS) before the issue is ₹4.6, which will dilute to ₹3.05 post-issue. The pre-issue Price-to-Earnings (P/E) ratio is 30.43x, and the post-issue P/E ratio is 45.83x, while the industry average P/E ratio is around 31x, suggesting a slightly premium valuation.

IPO Objectives

The funds raised through the IPO will be utilised as follows:

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

2. ₹1,100 million to meet part of the incremental working capital requirements.

3. The remaining amount for general corporate purposes.

Grey Market Premium (GMP) & Listing Gains

The Grey Market Premium for Scoda Tubes IPO is currently estimated at ₹15 per share, indicating an expected listing gain of around 10.7% over the upper price band. However, investors are advised to treat GMP as an indicative figure based on demand-supply dynamics in informal markets and not as a guaranteed price.

How to Check Scoda Tubes IPO Allotment Status

The allotment status will be declared on or about June 2, 2025, on the registrar's website. Investors can check their allotment status by:

• Visiting the IPO allotment status page.

• Selecting “Scoda Tubes Limited” from the IPO list.

• Entering their application number, PAN, or Demat Client ID.

• Submitting the details to view allotment outcome.

Final Thoughts

Scoda Tubes Limited, with its strong presence in the stainless steel tubes industry and robust financial track record, presents a promising opportunity for investors looking to participate in the growth of India's industrial manufacturing sector. Given the attractive Grey Market Premium and steady financials, the IPO may offer listing gains, although investors should evaluate their risk appetite carefully before applying.

The Upcoming IPOs in this week and coming weeks are 3B Films, N R Vandana Tex Industries, Scoda Tubes,Neptune Petrochemicals, Victory Electric Vehicles International, Wagons Learning.

The Current active IPO are Blue Water Logistics, Astonea Labs, Nikita Papers, Prostarm Info Systems, Aegis Vopak Terminals, Schloss Bangalore.

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