Scoda Tubes Limited, a leading Indian manufacturer of stainless-steel tubes and pipes, has announced its upcoming Initial Public Offering (IPO) scheduled to open on May 28, 2025, and close on May 30, 2025. The company aims to raise ₹220 crore entirely through a fresh issue of 157.14 lakh equity shares under the Book Built Issue route.

The IPO has a price band of ₹130 to ₹140 per share, and the lot size for retail investors is fixed at 100 shares, requiring a minimum investment of ₹14,000. For High-Net-Worth Individuals (HNIs), the minimum investment is 15 lots or 1,500 shares, amounting to ₹2,10,000.

The tentative allotment date is June 2, 2025, and the shares are expected to be listed on both NSE and BSE on or around June 4, 2025.

Strong Track Record and Product Portfolio

With over 14 years of experience, Scoda Tubes specializes in the production of seamless and welded stainless steel tubes and pipes. Its product portfolio is categorised under five main 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 high-performance products are used across diverse industrial applications, helping the company cater to both domestic and international markets.

Experienced Promoters and Financial Growth

The company's promoters — Samarth Patel, Jagrutkumar Patel, Ravi Patel, Saurabh Patel, and Vipulkumar Patel — bring an average of 8 years of industry experience. Their expertise spans product marketing, procurement, finance, accounting, and customer relationship management.

Financially, the company has shown steady growth:

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

• EBITDA increased from ₹110.14 million in FY22 to ₹614.18 million in FY24

• Profit after Tax (PAT) rose from ₹16.36 million in FY22 to ₹183 million in FY24

• For the period ending December 31, 2024, Scoda Tubes posted ₹3,634.80 million in revenue and ₹249.14 million in PAT

Valuation Metrics and Ratios

The pre-issue EPS for FY24 stands at ₹4.6, and the post-issue EPS is ₹3.05. Based on these figures, the pre-issue P/E ratio is 30.43x, and the post-issue P/E ratio is 45.83x, compared to the industry average of 31x.

Other financial metrics include:

• ROCE (Return on Capital Employed): 15.92 percent

• ROE (Return on Equity): 28.77 percent

• RoNW (Return on Net Worth): 28.77 percent

• Annualised EPS: ₹8.10

• P/E Ratio based on latest earnings: 17.26x

These indicators suggest that the IPO is reasonably priced, especially for investors seeking exposure in the engineering and manufacturing space.

IPO Lead Manager and Registrar

The IPO is managed by Monarch Networth Capital Limited as the Book Running Lead Manager, while MUFG Intime India Private Limited serves as the registrar to the issue.

Grey Market Premium (GMP) and Investor Outlook

As of now, the Grey Market Premium (GMP) for Scoda Tubes IPO is reported at ₹10, indicating a potential listing gain of approximately 7.41 percent. However, it's important to note that GMP is unregulated and varies based on informal market sentiment, hence it should not be considered a reliable indicator of listing performance.

The GMP is shared only for educational and informational purposes. Investors are advised to make decisions based on the company's fundamentals and risk profile.

Investor Recommendation

Scoda Tubes has demonstrated consistent financial growth, efficient management, and a clear industry focus. The pricing, while slightly premium in terms of post-issue valuation, reflects the company’s profitability and return ratios.

Given the strong fundamentals and moderate GMP, risk-tolerant investors may consider applying for listing gains. Long-term investors with an outlook on industrial growth and stainless steel applications may also find value.

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, Dar Credit and Capital, Belrise Industries.

The Closed IPOs are Borana Weaves.