Scoda Tubes Limited, a Gujarat-based manufacturer specializing in stainless steel tubes and pipes, launched its Initial Public Offering (IPO) in May 2025. The company aimed to raise ₹275 crore through a fresh issue of equity shares, with no offer for sale. The IPO was oversubscribed on its opening day, reflecting strong investor interest. However, the listing on June 4, 2025, was flat at ₹140 per share, matching the issue price.business-standard.com+6ndtvprofit.com+6minutetoknow.in+6economictimes.indiatimes.comeconomictimes.indiatimes.com
📊 IPO Highlights
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Issue Size: ₹275 crore (fresh issue)
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Price Band: ₹140 per share (face value ₹10)
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Listing Date: June 4, 2025
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Listing Price: ₹140 per share (flat listing)
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Listing Bourses: BSE and NSE
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Lead Manager: Monarch Networth Capital
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Registrar: Link Intime India Pvt Ltdnavbharattimes.indiatimes.combusiness-standard.comeconomictimes.indiatimes.combusiness-standard.com+5orissadiary.com+5economictimes.indiatimes.com+5economictimes.indiatimes.com+6minutetoknow.in+6economictimes.indiatimes.com+6ipoplatform.com+2ndtvprofit.com+2economictimes.indiatimes.com+2
📈 Grey Market Premium (GMP) Insights
Before the IPO, Scoda Tubes’ shares were trading at a Grey Market Premium (GMP) of ₹10–₹15, indicating a modest listing gain expectation. Despite this, the flat listing price suggests that the market had already priced in the anticipated gains.economictimes.indiatimes.com+2economictimes.indiatimes.com+2economictimes.indiatimes.com+2
🏭 Company Overview
Established in 2008, Scoda Tubes manufactures a wide range of stainless steel tubes and pipes, including seamless and welded variants. The company caters to various industries such as oil and gas, chemicals, pharmaceuticals, automotive, and railways. Its manufacturing facility in Mehsana, Gujarat, boasts an installed capacity of 10,068 MT per annum for seamless products and 1,020 MT per annum for welded products. The company also produces its principal raw material, “mother hollow,” through a hot piercing mill, ensuring backward integration and cost control .ntmedia.in+7ipoplatform.com+7ndtvprofit.com+7ndtvprofit.com+1ipoplatform.com+1
💰 Financial Snapshot
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Revenue (FY 2023–24): ₹400 crore
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Net Profit: ₹18 crore
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Debt (as of March 31, 2024): ₹209 crore
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Exports: Served 16 countries, including the US, Germany, and Francenavbharattimes.indiatimes.com+4orissadiary.com+4economictimes.indiatimes.com+4economictimes.indiatimes.com+2ndtvprofit.com+2economictimes.indiatimes.com+2
The company’s financials indicate steady growth, with a significant portion of revenue derived from seamless products and a strong domestic market presence .ndtvprofit.com
📌 Use of IPO Proceeds
The funds raised from the IPO are earmarked for:
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Capital Expenditure: Expanding production capacity for seamless and welded tubes and pipes.
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Working Capital: Partially funding incremental working capital requirements for FY 2026 and 2027.
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General Corporate Purposes: Supporting overall business operations and growth initiatives .stainless-steel-world.net+8minutetoknow.in+8business-standard.com+8business-standard.com+4ndtvprofit.com+4orissadiary.com+4
✅ Should You Apply or Avoid?
Apply if you:
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Are looking for exposure to the manufacturing sector, particularly in stainless steel products.
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Believe in the company’s growth prospects and expansion plans.
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Are comfortable with the initial flat listing and potential long-term gains.
Avoid if you:
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Prefer immediate listing gains and are risk-averse.
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Are concerned about the company’s debt levels and its impact on profitability.
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Are looking for high-growth sectors beyond traditional manufacturing.economictimes.indiatimes.com+4business-standard.com+4economictimes.indiatimes.com+4
🧠 Final Thoughts
Scoda Tubes’ IPO attracted significant investor interest, as reflected in the oversubscription on its opening day. The flat listing price suggests that the market had already priced in the expected gains. Investors with a long-term investment horizon and confidence in the company’s growth trajectory may consider applying, while those seeking immediate returns might approach with caution.
