Scoda Tubes IPO - Check Issue Date, Price, GMP, Allotment Status

Scoda Tubes Limited, a leading manufacturer of stainless steel tubes and pipes based in Gujarat, India, is launching its Initial Public Offering (IPO) on May 28, 2025. This mainboard IPO, aimed at raising ₹220 crores, marks a significant step for the company, which has over 14 years of experience in the stainless steel industry. 

This article overviews the Scoda Tubes IPO, including its dates, price band, grey market premium (GMP), allotment details, financial performance, and investment considerations.

Scoda Tubes IPO Details

The Scoda Tubes IPO is a Book Built Issue comprising a fresh issue of 1.57 crore equity shares with a face value of ₹10 each, with no offer-for-sale (OFS) component. The IPO is set to list on the BSE and NSE, with a tentative listing date of June 4, 2025.

Key Scoda Tubes IPO Details

• IPO Open Date: May 28, 2025
• IPO Close Date: May 30, 2025
• Issue Size: ₹220 Crores (1,57,14,286 shares)
• Fresh Issue: ₹220 Crores (1,57,14,286 shares)
• Face Value: ₹10 per equity share
• Price Band: ₹130 to ₹140 per share
• Lot Size: 100 shares
• Minimum Investment (Retail): ₹14,000 (1 lot at the cutoff price)
• Minimum Investment (sNII): ₹2,10,000 (15 lots, 1,500 shares)
• Minimum Investment (bNII): ₹10,08,000 (72 lots, 7,200 shares)
• Market Maker Portion: Not specified
• IPO Reservation:
  • Qualified Institutional Buyers (QIB): Not more than 50% of the Net Issue
  • Non-Institutional Investors (NII/HNI): Not less than 15% of the Net Issue
  • Retail Investors: Not less than 35% of the Net Issue

Scoda Tubes IPO Timeline (Key Dates)

Investors can apply through the ASBA (Application Supported by Blocked Amount) process via their bank’s net banking, UPI through registered brokers, or offline forms submitted through stockbrokers. The IPO is managed by Monarch Networth Capital Ltd as the book-running lead manager, with MUFG Intime India Private Limited (Link Intime) as the registrar.

About Scoda Tubes Limited

Founded in 2008, Scoda Tubes Limited is a Gujarat-based manufacturer specialising in stainless steel seamless and welded tubes and pipes. The company caters to various industries, including oil and gas, chemicals, fertilisers, power, pharmaceuticals, automotive, railways, and transportation. Its products are marketed under the “Scoda Tubes” brand and are known for their durability, corrosion resistance, and precision.

Key Highlights

• Global Presence: Exports to 11 countries, including the United States, Germany, and Italy, with over 232 active customers as of December 31, 2024.
• Certifications: It has been approved by key organisations such as Bharat Heavy Electricals Limited (BHEL), Hindustan Petroleum Corporation Limited (HPCL), and the Department of Atomic Energy, Government of India.
• Manufacturing Facility: Operates a modern, solar-powered facility on the Ahmedabad-Mehsana Highway, Gujarat, with a hot piercing mill for producing mother hollows, the primary raw material for seamless products.
• Workforce: Employs a skilled team led by promoters Samarth Patel, Jagrutkumar Patel, Ravi Patel, Saurabh Patel, and Vipulkumar Patel.

Product Portfolio

• Seamless Tubes/Pipes: Stainless steel seamless pipes, seamless tubes, and seamless “U” tubes.
• Welded Tubes/Pipes: Stainless steel welded tubes and “U” tubes.
• Instrumentation Tubes: Precision-engineered tubes for industrial applications.
• Job Work Services: Annealing, straightening, pickling, and marking services.

Competitive Strengths

• Backwards integration through in-house production of mother hollows.
• Strong relationships with domestic and international clients.
• High-quality products adhering to global standards.
• Strategic focus on expanding export markets and high-margin seamless products.

Financial Performance

Scoda Tubes has demonstrated robust financial growth in recent years, driven by increasing demand for stainless steel products. Below is a summary of its restated consolidated financials:

Key Performance Indicators (KPIs)

• Market Capitalisation: ₹839 Crores (at the upper price band)
• Return on Equity (ROE): 33.6%
• Return on Capital Employed (ROCE): 19.9%
• Debt/Equity Ratio: 3.19
• PAT Margin: ~6% (based on FY25 annualized figures)
• Price to Book Value: 8.76x (based on FY24)
• Earnings Per Share (EPS):
  • FY24: ₹4.60
  • FY25 (annualized): ₹6.28 (estimated)
• Price-to-Earnings (P/E) Ratio:
  • FY24: 30.43x
  • FY25 (estimated): 27.96x

The company’s revenue grew by 31% from ₹305.1 crores in FY23 to ₹399.9 crores in FY24, with profit after tax increasing by 76.9% from ₹10.34 crores to ₹18.3 crores. For the nine months ended December 31, 2024, revenue reached ₹361.2 crores, with a PAT of ₹24.9 crores, reflecting strong growth momentum. However, high working capital days (162 days in FY24) and raw material price volatility pose risks to profitability.

Objectives of Scoda Tubes IPO

The net proceeds from the Scoda Tubes IPO will be utilised for the following purposes:

These investments aim to enhance manufacturing capacity by 12,130 MTPA by FY26, support operational growth, and strengthen the company’s market position.

Scoda Tubes IPO GMP (Grey Market Premium)

As of May 28, 2025, the grey market premium for Scoda Tubes IPO varies, with recent reports indicating a GMP of ₹22 to ₹24 per share. This suggests an estimated listing price of ₹162 to ₹164, implying a potential listing gain of 15.71% to 17.14% over the upper price band of ₹140. The GMP has shown volatility, ranging from a low of ₹10 on May 23 to a high of ₹24 on May 27.

Note: GMP is subject to change based on market sentiment and should not be the sole basis for investment decisions.

Things to Consider Before Applying for Scoda Tubes IPO

Positives:

• Substantial revenue and profit growth: Revenue up 31% and PAT up 76.9% from FY23 to FY24.
• Established global presence: Exports to 11 countries with 232 active customers.
• Diverse product portfolio: Seamless and welded tubes/pipes catering to multiple industries.
• Backwards integration: In-house production of mother hollows enhances cost efficiency.
• Favourable industry trends: Supported by initiatives like “Make in India” and “Atmanirbhar Bharat.”

Risks:

• High Working Capital Days: Increased from 151 days in FY23 to 162 days in FY24, indicating cash flow strain.
• Raw Material Price Volatility: Fluctuations in stainless steel prices may impact margins.
• Competitive Pressure: Faces competition from established players like Ratnamani Metals & Tubes, Venus Pipes, Welspun Speciality Solutions, and Suraj Limited.
• Valuation Concerns: The P/E ratios of 30.43x (FY24) and 27.96x (FY25 estimated) are in line with peers but may be considered high, given the risks.
• Dependence on Key Clients: Top client accounts for 18% of revenue, posing a slight concentration risk.

Given the company’s growth trajectory and industry tailwinds, the IPO may appeal to long-term investors with a moderate to high risk appetite. However, retail investors should carefully assess the valuation and market conditions before applying.

How to Apply for Scoda Tubes IPO?

Investors can apply for the Scoda Tubes IPO through the following methods:

• ASBA: Use your bank’s net banking platform to apply via the ASBA process.
• UPI: Apply through UPI using a registered broker or trading app.
• Offline: Submit a physical application form through your stockbroker.

Steps to Apply via Broker:

• Log in to your stockbroker’s app or website.
• Navigate to the IPO section and select “Scoda Tubes IPO.”
• Enter your UPI ID, quantity (minimum 100 shares), and price (preferably the cutoff price of ₹140).
• Submit the application and confirm the UPI mandate by 5:00 PM on May 30, 2025.

Scoda Tubes IPO Allotment Status

The Scoda Tubes IPO allotment status check is available on MUFG Intime India Private Limited (Link Intime) website after June 2, 2025, once the registrar releases it. Follow these steps:

• Visit the Link Intime website
• Select “Scoda Tubes Limited” from the dropdown menu.
• Enter your PAN, application number, or DP/Client ID.
• Click “Search” to view your allotment status.

Alternatively, check the status on the BSE website by selecting “Equity” and “Scoda Tubes Limited.” Investors will also receive allotment updates via email.

Company Contact Details

Scoda Tubes Limited
Survey No. 1566/1, Village Rajpur, Kadi, Mehsana,
Ahmedabad, Gujarat 382740, India
Phone: +91-27-64278278
Email: cs@scodatubes.com

Registrar

MUFG Intime India Private Limited (Link Intime) 
C 101, 247 Park, L.B.S. Marg, Vikhroli (West),
Mumbai - 400083, India
Phone: +91-22-4918 6270
Email: scodatubes.ipo@linkintime.co.in

Conclusion

The Scoda Tubes IPO offers an opportunity to invest in a well-established manufacturer of stainless steel tubes and pipes with a strong growth track record and a focus on high-margin seamless products. The company’s global presence, backwards integration, and alignment with industrial growth trends make it an attractive proposition for long-term investors. However, risks such as high working capital days, raw material price volatility, and competitive pressures warrant caution. Before applying, retail investors should carefully evaluate the IPO’s valuation and market sentiment, including GMP trends.

For detailed information, refer to the Scoda Tubes IPO Red Herring Prospectus (RHP), available on the company’s website or through the registrar. Stay updated on subscription status and grey market trends to make an informed investment decision.

Disclaimer: The information provided in this article is for informational purposes only and should not be considered investment advice. Investors are advised to conduct their research and consult financial advisors before making investment decisions. GMP data is volatile and not a definitive indicator of listing performance.

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