Scoda Tubes Limited is an established manufacturer of stainless-steel tubes and pipes based in India, with over 14 years of operational experience. The company’s product portfolio is broadly divided into two categories: seamless tubes/pipes and welded tubes/pipes. These products span five primary lines, including stainless steel seamless pipes, seamless tubes, seamless “U” tubes, instrumentation tubes, and welded tubes and “U” tubes. Scoda Tubes caters to various industrial sectors requiring high-quality stainless steel products.

IPO Details and Subscription Timeline
Scoda Tubes has launched a Book Built Issue IPO with a total issue size of ₹220.00 Crores, comprising a fresh issue of 157.14 lakh equity shares. The subscription for the IPO opens on May 28, 2025, and closes on May 30, 2025. The shares are planned to be listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) tentatively on June 4, 2025. The final allotment status is expected to be announced around June 2, 2025.

Price Band and Investment Details
The IPO price band is set between ₹130 and ₹140 per equity share. Based on the upper band price of ₹140, the market capitalization of Scoda Tubes will be approximately ₹838.73 Crores post-issue. The minimum lot size for retail investors is fixed at 100 shares, which translates to an investment of ₹14,000 at the upper band. High-Net-Worth Individuals (HNIs) are required to apply for a minimum of 15 lots (1,500 shares), amounting to ₹2,10,000.

Book Running Lead Manager and Registrar
MONARCH NETWORTH CAPITAL LIMITED is appointed as the book running lead manager (BRLM) for the IPO, responsible for managing the issue and allocation process. MUFG Intime India Private Limited will handle the registrar functions, including share allotment and application management.

Grey Market Premium (GMP) and Listing Gains
As of May 23, 2025, the Grey Market Premium for Scoda Tubes IPO stands at ₹15, implying a listing gain of approximately 10.71% over the IPO price band upper limit of ₹140. However, it is important to note that GMP trading happens outside regulated markets and does not guarantee actual listing prices. Investors are cautioned that GMP is indicative and depends on unorganized market demand and supply dynamics.

IPO Subscription Status
On the final day of the subscription period (May 30, 2025), as of 11:00 AM, Scoda Tubes IPO had received subscriptions approximately 11.59 times. This reflects strong investor interest and confidence in the company’s business and valuation.

Anchor Investor Allocation
Scoda Tubes successfully raised ₹65.99 Crores from anchor investors who subscribed at the upper price band of ₹140 per share. A total of 47,14,200 equity shares were allotted to anchor investors from the Qualified Institutional Buyers (QIBs) category, strengthening the institutional backing for the IPO.

How to Check Allotment Status
Investors can check their allotment status online from June 2, 2025, via the registrar’s website by selecting the Scoda Tubes IPO, and entering their application number, PAN, or Demat Client ID. This allows quick confirmation of share allocation before the shares get listed on exchanges.

Objectives of the IPO Proceeds
Scoda Tubes plans to utilize the net proceeds of the IPO primarily for:

1. Capital Expenditure: ₹76.99 Crores will be spent on expanding production capacity for seamless and welded tubes and pipes.

2. Working Capital: ₹110 Crores will fund incremental working capital requirements to support business growth.

3. General Corporate Purposes: Remaining funds will be used for broader corporate needs.

Financial Performance and Key Metrics
The company has demonstrated steady revenue and profit growth over recent years. Revenues grew from ₹1,950.53 Million in FY22 to ₹4,024.88 Million in FY24, with EBITDA rising consistently from ₹110.14 Million in FY22 to ₹614.18 Million in FY24. Profit after tax also increased robustly from ₹16.36 Million in FY22 to ₹183 Million in FY24, with further growth observed in the nine-month period ended December 31, 2024.

Key performance indicators include:

• Pre-issue EPS: ₹4.6 (FY24)

• Post-issue EPS: ₹3.05 (FY24)

• Pre-issue P/E Ratio: 30.43x

• Post-issue P/E Ratio: 45.83x

• Industry P/E Ratio: 31x

• Return on Capital Employed (ROCE): 15.92% (FY24)

• Return on Equity (ROE): 28.77% (FY24)

These metrics suggest that the IPO is priced fairly, considering the company’s growth prospects and industry valuation standards.

Promoter Expertise and Management
The promoters, including Samarth Patel, Jagrutkumar Patel, Ravi Patel, Saurabh Patel, and Vipulkumar Patel, collectively bring around 8 years of direct industry experience in stainless steel tubes and pipes, alongside expertise in marketing, procurement, finance, accounting, and customer relations. Their leadership is a key strength for Scoda Tubes.

IPO Review and Recommendation
Given Scoda Tubes’ steady financial growth, experienced management, strong anchor investor support, and favorable GMP indicating potential listing gains, the IPO presents an attractive opportunity, especially for investors willing to take moderate risk for listing profits. Retail investors should consider their risk tolerance and consult financial advisors before applying.

The Upcoming IPOs in this week and coming weeks are Victory Electric Vehicles International, Wagons Learning.

The Current active IPO are 3B Films, N R Vandana Tex Industries, Scoda Tubes, Neptune Petrochemicals.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.