Today, May 30, 2025, marks the final day for subscription to the Initial Public Offering (IPO) of Scoda Tubes Limited. The IPO has garnered significant attention from investors, with the issue being open for subscription since Wednesday, May 28, 2025. The company aims to raise ₹220 crore through this IPO, with the shares proposed to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
Subscription Status
As of May 30, 2025, 10:14 AM, the IPO has been subscribed 10.59 times. The retail category has been subscribed 8.06 times, the Qualified Institutional Buyers (QIB) portion 2.11 times, and the Non-Institutional Investors (NII) portion a significant 27.80 times. On the second day of bidding, the IPO was subscribed 8.11 times. The retail portion was booked 6.46 times, the NII segment 20.21 times, and the QIB portion 1.93 times. By 1:30 PM on Thursday, May 29, the IPO had been oversubscribed by 5.06 times. Non-institutional investors (NIIs) led the demand by subscribing to the portion reserved for them by 10.54 times, followed by retail investors at 4.55 times, and qualified institutional buyers (QIBs) at 1.85 times.
Grey Market Premium (GMP)
The Grey Market Premium (GMP) for Scoda Tubes shares is reported to be around ₹24 today. Some reports indicate a GMP between ₹19-₹21. Ahead of the IPO opening, the GMP was around ₹2. On Thursday, May 29, the unlisted shares were trading at ₹162, commanding a GMP of ₹22 or 15.7 per cent against the upper band price of ₹140, in the grey market.
IPO Details
Scoda Tubes has fixed the price band of the IPO between ₹130 and ₹140 per equity share. The IPO consists of a fresh issue of 15.7 million equity shares. There is no offer-for-sale (OFS) component. Investors can bid for a minimum lot size of 100 shares, requiring a minimum investment of ₹14,000 (₹140 x 100). A retail bidder can apply for a maximum of 14 lots, amounting to an investment of ₹1,96,000.
The company intends to utilize ₹76.99 crore from the net issue proceeds for capital expenditure towards expanding the production capacity of seamless and welded tubes and pipes. Additionally, ₹110 crore will be used to partially fund the incremental working capital requirements of the company. The remaining funds are earmarked for general corporate purposes.
Company Overview
Scoda Tubes Limited is a manufacturer of stainless steel tubes and pipes, catering to various industries including oil and gas, chemicals, fertilizers, and power. The company operates from Mehsana, Gujarat, and has a growing export footprint spanning 11 countries, with exports contributing over 28% of total revenue in the first nine months of FY25.
Key Dates
Financial Performance
Scoda Tubes has demonstrated strong financial growth over the past two years. In FY24, the company reported revenue of ₹402.49 crore against ₹307.79 crore in FY23. For the nine months ended December 31, 2024, the company earned a net profit of ₹24.91 crore on a total income of ₹363.48 crore.
Expert Reviews
Canara Bank Securities has assigned a 'subscribe' tag to the IPO, highlighting Scoda Tubes' technical specialization, backward integration, and global certification profile. SBI Capital Securities also recommends subscribing to the issue. Bajaj Broking has assigned a Neutral rating on the Scoda Tubes IPO, advising a cautious approach for investment at this stage, considering the operational strengths but also factoring in the existing working capital challenges, market risks, and margin pressures.
Important Considerations
While the company has shown revenue and profitability, cash generated from operations in FY24 stood at only Rs 2.26 crore. Investors should also be mindful of cash flow concerns and customer concentration risks.
