Scoda Tubes is launching its IPO through a book-building process, aiming to raise ₹220 crore. This issue consists entirely of a fresh offering of 1.57 crore equity shares. The IPO will open for public subscription from May 28, 2025, to May 30, 2025.
The basis of allotment is likely to be finalised on June 2, 2025, and the shares are expected to be listed on the BSE and NSE by June 4, 2025. The price band for the IPO is fixed between ₹130 and ₹140 per share. Retail investors need to apply for a minimum of 100 shares, which amounts to ₹13,000 at the lower price band.
However, to ensure allotment in case of high demand, bidding at the cutoff price, around ₹14,000, is advised. For sNII investors, the minimum application is 15 lots (1,500 shares) costing ₹2,10,000. For bNII investors, it is 72 lots (7,200 shares) worth ₹10,08,000.
Monarch Networth Capital Ltd is managing the issue as the lead book runner, while MUFG Intime India Private Limited is the registrar. Investors should refer to the RHP for complete details.
Industry Outlook
- India’s domestic stainless-steel production rose from 2.3 million tonnes in FY20 to 3.3 million tonnes in FY24, growing at a CAGR of 10%. This steady rise indicates a strong and expanding market, which benefits Scoda Tubes Limited by providing consistent demand for its stainless-steel tube and pipe products.
- India exported around 45% of its stainless-steel welded pipes and tubes to the USA in FY24, followed by 22% to Brazil. With growing global demand, especially from developed markets, Scoda Tubes Limited can strengthen its export presence and increase revenue from international sales, backed by its manufacturing capabilities and product range.
Scoda Tubes IPO Objectives
The company plans to allocate the net proceeds from the issuance to the following purposes:
- The funds will be used to expand the company’s production capacity for both seamless and welded tubes and pipes, helping meet growing demand in domestic and international markets.
- A portion of the proceeds will support additional working capital needs, ensuring smooth day-to-day operations and better inventory and order management.
- The remaining funds will be used for general corporate purposes.
About Scoda Tubes Limited
Scoda Tubes Limited is a stainless-steel tubes and pipes manufacturer based in Gujarat, India, with over 14 years of industry experience. The company specialises in both seamless and welded stainless steel products, which include seamless pipes, seamless tubes, “U” tubes, instrumentation tubes, and welded tubes.
These products are marketed under the brand name “Scoda Tubes Limited” and cater to sectors like oil and gas, chemicals, power, railways, pharmaceuticals, and more.
The company operates a fully integrated manufacturing facility at the Ahmedabad-Mehsana Highway in Rajpur, Gujarat. This facility spans over 21,000 square metres and includes dedicated seamless and welded divisions, equipped with advanced machinery such as pilger mills, cold drawing lines, annealing furnaces, and testing equipment.
It has an annual production capacity of 20,000 MT of mother hollow, 10,068 MT of seamless products, and 1,020 MT of welded products. Scoda Tubes also earns revenue through job work services like annealing and pickling. Its raw materials, including SS round bars and coils, are sourced from Indian suppliers.
The company has a wide distribution network in both domestic and global markets, including authorised stockists in Maharashtra and the US. Export destinations include Germany, the Netherlands, Italy, and Spain. The company holds several international certifications and maintains strict quality standards across its operations.
How To Check the Allotment Status of Scoda Tubes IPO?
Steps to check IPO allotment status on Angel One’s app:
- Log in to the Angel One app.
- Go to the IPO Section and then to IPO Orders.
- Select the individual IPO that you had applied for and check the allotment status.
- Angel One will notify you of your IPO allotment status via push notification and email.
How To Apply for the Scoda Tubes IPO Online?
- Login to Your Angel One Account: Open the Angel One app or website and log in with your credentials.
- Locate the IPO Section: Navigate to the 'IPO' section on the platform.
- Select IPO: Find and select the Scoda Tubes IPO from the list of open IPOs.
- Enter the Lot Size: Specify the number of lots you want to bid for.
- Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application.
- Approve Funds: Once you receive the bid request on your UPI app, approve it by entering your UPI PIN.
Contact Details of Scoda Tubes IPO
Registered office: Survey No. 1566/1, Village Rajpur, Kadi, Mehsana, Ahmedabad – 382740, Gujarat
Phone: 027 64278278
E-mail: cs@scodatubes.com
Scoda Tubes IPO Reservation
|
Investor Category |
Shares Offered |
|
Anchor Investor Shares Offered |
- |
|
QIB Shares Offered |
31,42,943 (28.57%) |
|
NII (HNI) Shares Offered |
23,57,143 (21.43%) |
|
bNII > ₹10L |
15,71,429 (14.29%) |
|
sNII < ₹10L |
7,85,714 (7.14%) |
|
Retail Shares Offered |
55,00,000 (50.00%) |
|
Total Shares Offered |
1,10,00,086 (100%) |
Scoda Tubes IPO Lot Size
|
Category |
Lots |
Shares |
Amount (in ₹) |
|
Retail (Min) |
1 |
100 |
14,000 |
|
Retail (Max) |
14 |
1,400 |
1,96,000 |
|
S-HNI (Min) |
15 |
1,500 |
2,10,000 |
|
S-HNI (Max) |
71 |
7,100 |
9,94,000 |
|
B-HNI (Min) |
72 |
7,200 |
10,08,000 |
Scoda Tubes IPO Promoter Holding
The promoters of the company include Samarth Patel, Jagrutkumar Patel, Ravi Patel, Saurabh Patel and Vipulkumar Patel
|
Share Holding Pre-Issue |
100.00% |
|
Share Holding Post Issue |
- |
Note: Equity dilution will be determined by subtracting the Shareholding Post Issue from the Shareholding Pre Issue.
Key Performance Indicators for Scoda Tubes IPO
|
Indicator |
Value |
|
ROE (%) |
28.77 |
|
RoCE (%) |
15.92 |
|
RoNW (%) |
28.77 |
|
PAT Margin |
4.58 |
Scoda Tubes IPO Prospectus
Scoda Tubes IPO Registrar and Lead Managers
Scoda Tubes IPO Lead Managers
- Monarch Networth Capital Limited
Registrar for Scoda Tubes IPO
MUFG Intime India Private Limited ((Link Intime)
- Contact Number: +91-22-4918 6270
- Email Address: ipo@linkintime.co.in
Scoda Tubes IPO Registrar
Financial Performance of Scoda Tubes Limited
| Particulars | Year ending on March 31, 2024 | Year ending on March 31, 2023 |
|---|---|---|
| Revenue from Operation (in ₹ million) | 3,998.61 | 3,051.28 |
| Profit/ (loss) for the year (in ₹ million) | 183.00 | 103.36 |
| Earnings per Share (₹) | 4.60 | 2.60 |
| Net Worth (in ₹ million) | 636.12 | 453.11 |
| Return on Equity (RoE) (%) | 28.77 | 22.81 |
| Return on Capital Employed (RoCE) (%) | 15.92 | 12.62 |
| EBITDA (in ₹ million) | 587.91 | 347.84 |
Know before investing
Strengths
8The company specialises in stainless steel tubes with 10,068 MTPA production capacity.
Plant near Mundra port reduces costs and boosts export efficiency.
The company owns 21 production lines and 69,411 sq. m. land area.
Backward integrated plant with 20,000 MTPA mother hollow piercing mill.
Exports to 16+ countries with over 20% revenue generation.
Supplies to HPCL, BHEL, KRIBHCO and various railway divisions.
Holds ISO, PED, DNV certifications for international quality compliance.
Gains from rising infrastructure projects, LNG demand, and steel support initiatives by the government.
Risks
8Heavy reliance on top 10 customers risks revenue concentration.
Two key stockists control global product sales and distribution.
Low demand from EPC or industrial clients may hurt growth.
Welded tubes business lacks scale and past performance is limited.
Raw material supply issues or price swings may impact margins.
Working capital cycle is long with high credit and inventory needs.
Export business depends on policies in 11 international markets.
Sole manufacturing unit in Gujarat poses operational continuity risks.
Scoda Tubes IPO Peer Comparison
| Company Name | EPS (Basic) | NAV (per share) (₹) | P/E (x) | RoNW (%) |
|---|---|---|---|---|
| Scoda Tubes Limited | 4.60 | 15.99 | - | 28.77 |
| Ratnamani Metals and Tubes Limited | 89.18 | 448.07 | 31.93 | 19.90 |
| Venus Pipes and Tubes Limited | 42.36 | 200.05 | 30.77 | 21.17 |
| Welspun Specialty Solutions Limited | 1.18 | 1.76 | 27.15 | 67.11 |
| Suraj Limited | 11.72 | 66.74 | 34.79 | 17.57 |
