Scoda Tubes IPO: Know the 10 Key Points Before Investing

Scoda Tubes IPO​ is all set to open on May 28, 2025 (Wednesday). Established in 2008, it is one of the leading manufacturers of stainless-steel tubes and pipes. Its product portfolio ranges from seamless tubes, welded pipes to stainless steel instrumentation tubes. Under the brand name “Scoda Tubes Limited,” the company sold its products to engineering, transportation, chemicals, and automotive clients.

In this blog, we’ll know the 10 key Scoda Tubes IPO​ details, including its IPO dates, minimum investment, financials, and risk factors.

1. Scoda Tubes IPO​ Date

Scoda Tubes IPO is a mainboard IPO which is going to open on May 28, 2025 and will close on May 30, 2025. The allotment date is June 2, 2025, while the listing is expected to be on June 4, 2025. As it is a mainboard IPO, it is going to list on both the NSE and BSE exchanges.

2. Scoda Tubes IPO​ Issue Size

Scoda Tubes Limited IPO valuation, as denoted by the market capitalization, stood in the range of ₹795 crores to ₹839 crores. Its issue size is ₹220 crores (1.57 crore shares) with only the fresh issue component. The lot size is 100 shares, and the price band is fixed at ₹130 to ₹140 per share.

3. Scoda Tubes IPO​ Proceeds Usage

Scoda Tubes Limited IPO proceeds will be used to fund the capital expenditure requirements for expanding the production capacity of seamless and welded tubes and pipes. Apart from this, it is also used to meet any extra working capital requirement and other corporate needs.

4. Scoda Tubes IPO​ Reservations and Minimum Investment

Scoda Tubes IPO​ reservation to retail investors is 35% of the offer (₹77 crores). For QIBs, it is 50% of the offer (₹110 crores) and for NIIs, it is 15% of the offer (₹33 crores).

Scoda Tubes IPO​ lot size is 100 shares, wherein bidding can be done in multiples. The minimum amount that a retail investor has to invest (at the upper price band) is ₹14,000. For S-NII, the minimum investment amount is ₹2,10,000, while for B-NII, it is ₹10,08,000.

5. Scoda Tubes IPO​ GMP

Scoda Tubes IPO GMP is ₹22 as of May 27, 2025 (at 15:55). It is expected to list at a 15.71% gain at a price of ₹162. However, GMP is not a safe or assured criterion to bid for an IPO.

6. Scoda Tubes IPO: Business Model

Scoda Tubes Limited manufactures seamless pipes, welded pipes, and tubes. It sells these products in different sectors such as EPC, transportation, and power. Apart from this, it also manufactures mother hollow, which is an important raw material in the stainless-steel seamless products. Its hot piercing mill has an annual production capacity of 20,000 MT.

The company also generates revenue from job work services such as annealing, straightening, and pickling. Aside from India, it also sells its products in the US, Italy, Germany, Spain, etc.

Its key competitive strengths are: specialised in the production of stainless steel tubes and pipes, diversified customer base, international revenue stream, and robust quality control processes.

Scoda Tubes IPO shareholding pattern reveals that Samarth Patel, Saurabh Patel, Jagrutkumar Patel, Ravi Patel, and Vipulkumar Patel are the promoters of the company.

7. Scoda Tubes IPO: Industry Overview

From FY24 to FY29, the demand for stainless steel tubes and pipes in India is expected to rise at a CAGR of 6%-8% to 0.45-0.47 million tonnes. This demand growth will be led by the end-use industries such as construction, automobile, oil and gas, etc.

Globally, the demand for stainless steel tubes and pipes rose by around 2.7 MT per annum in 2019 to 3.1 MT per annum in 2023, with a CAGR of around 3%.

In FY24, Scoda Tubes had a market share of around 5%-7% in India’s stainless steel seamless pipes and tubes industry. From government support policies such as “Make in India” to growing infrastructure development, this industry is expected to create numerous opportunities for the key players.

8. Scoda Tubes Limited IPO​: Financial Performance

Scoda Tubes Limited’s revenue has increased from ₹307.79 crores in FY23 to ₹402.49 crores in FY24, a growth of 30.77%. In the same period, net profit also increased by 76.98% from ₹10.34 crores to ₹18.30 crores in FY24.

Highlighting its healthy operational efficiency, the EBITDA grew by 69.02% on a year-on-year basis to ₹58.79 crores in the financial year 2023-24.

In FY24, the seamless products installed capacity expanded by 53.94% YoY to 10,068 tonnes, while the welded products installed capacity remained constant at 1,020 tonnes.

9. Scoda Tubes Limited​ IPO: Peer Analysis

In FY24, Scoda Tubes Limited​ had an EBITDA margin of 14.70%, which was lower than its peer Ratnamani Metals & Tubes Limited (17.73%) but higher than that of Welspun Specialty Solutions Limited (8.01%).

Return on Capital Employed (ROCE) of Scoda Tubes Limited was 15.92% in the financial year 2023-24, lower than the industry peer’ Ratnamani Metals & Tubes Limited (24.36%).

The fixed asset turnover (a measure of asset efficiency relative to sales) of Scoda is highest among the peers, which is 4.90 in FY24.

10. Scoda Tubes IPO Risk Factors

Scoda Tubes Limited earned approximately 50% of revenue from the top 10 customers, and the loss of these customers can affect the company’s financial position. The termination of sales agreements with the stockists in the global market can affect the sales and overall profitability.

Any delay in the procurement of key raw materials or changes in prices can impact the operations and cash flows. The company had made negative cash flows in the past, which can continue in the future as well.

For all the insights on Scoda Tubes IPO​ and detailed expert advice, you can download the SMC ACE App or visit the SMC telegram channels. Take smart decisions and apply for Scoda Tubes IPO easily on the SMC ACE App by opening free demat account now.

References:
https://www.mnclgroup.com/storage/scoda-tubes-rhp.pdf
https://www.investorgain.com/gmp/scoda-tubes-ipo-gmp/1261/

Author: All Content is verified by SMC Global Securities.