Scoda Tubes Limited, a leading manufacturer of stainless steel tubes and pipes in India, has launched its Initial Public Offering (IPO) in 2025 with a fresh issue amounting to ₹220.00 Crores. The IPO consists entirely of a fresh issue of 157.14 lakh equity shares. Investors can subscribe to the issue from May 28, 2025, to May 30, 2025, with the allotment expected on June 2, 2025, and tentative listing on the BSE and NSE on June 4, 2025.

Company Overview and Product Portfolio

With over 14 years of experience, Scoda Tubes is well-established in the stainless steel tubes and pipes manufacturing sector. The company’s products are broadly classified into two main categories: seamless tubes/pipes and welded tubes and pipes. These categories encompass five product lines:

1. Stainless Steel Seamless Pipes

2. Stainless Steel Seamless Tubes

3. Stainless Steel Seamless “U” Tubes

4. Stainless Steel Instrumentation Tubes

5. Stainless Steel Welded Tubes and “U” Tubes

This diversified product portfolio caters to varied industrial requirements, reflecting Scoda Tubes’ strong positioning in the domestic stainless steel market.

IPO Details and Pricing

The IPO price band is set between ₹130 to ₹140 per equity share, valuing the company at approximately ₹838.73 Crores market capitalization at the upper band price of ₹140. The minimum lot size is 100 shares, with retail investors required to invest at least ₹14,000, while High Net Worth Individuals (HNIs) must subscribe to a minimum of 15 lots (1,500 shares) with an investment of ₹2,10,000.

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

Anchor Investor Participation and GMP

Scoda Tubes successfully raised ₹65.99 Crores from anchor investors, who were allotted 47,14,200 shares at ₹140 each. Anchor allocations come from the Qualified Institutional Buyers (QIBs) category.

The Grey Market Premium (GMP) of the IPO currently stands at ₹15, suggesting expected listing gains of around 10.7%. However, it is important to note that GMP is unofficial and depends on unregulated demand and supply, so investors should treat it with caution.

Financial Performance and Valuation

Scoda Tubes has demonstrated consistent financial growth over recent years:

The steady rise in revenue, EBITDA, and PAT reflects operational efficiency and market expansion. For FY24, the company posted a pre-issue EPS of ₹4.6 and a post-issue EPS of ₹3.05. The pre-issue P/E ratio stands at 30.43x, which is slightly above the industry average of 31x, indicating fair pricing. The company also shows strong return ratios with ROCE at 15.92%, and ROE at 28.77%, confirming efficient capital utilization and profitability.

IPO Subscription Status

As of the final day of subscription, May 30, 2025, the IPO was subscribed 53.77 times, indicating strong investor interest. Retail, institutional, and non-institutional investors participated enthusiastically, reinforcing confidence in the company’s growth prospects.

How to Check IPO Allotment

Investors can check their allotment status from June 2, 2025, onward through the registrar’s website by entering their application number, PAN, or DP Client ID. The allotment process is straightforward and allows investors to verify their share allocation easily.

Use of IPO Proceeds

The net proceeds from the IPO will be utilised primarily for:

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

• Funding incremental working capital requirements of ₹1,100.00 million.

• General corporate purposes.

Final Thoughts and Recommendation

Scoda Tubes stands out as a seasoned player with a diverse product line in the stainless steel pipes industry, backed by strong financials and an experienced management team. The current IPO price band and valuation metrics indicate the IPO is reasonably priced with potential for listing gains, as suggested by the GMP and subscription status.

Risk-tolerant investors looking for exposure in the industrial manufacturing segment may consider applying for the Scoda Tubes IPO, anticipating growth and steady financial performance in the medium to long term.

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

The Current active IPO are 3B Films

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