Scoda Tubes IPO
IPO Details
Scoda Tubes IPO is a bookbuilding of ₹200 Crore. The issue is entirely a fresh issue of ₹200 Crore and an offer for sale of Nil.
Scoda Tubes IPO opens for subscription on 2025-06-10 and closes on 2025-06-12. The allotment is expected to be finalized on 2025-06-14. The IPO will be listed on BSE, NSE with tentative listing date as 2025-06-17.
Price band is set at ₹245 to ₹255 per share. The minimum lot size for application is 60 shares (₹14700). It is suggested to bid at the cutoff price to avoid oversubscription, which is about ₹15300.
IPO Timeline
Company Overview
Scoda Tubes IPO Details
Scoda Tubes Limited is a leading manufacturer of stainless steel, carbon steel, and alloy steel tubes in India. The company serves diverse industries such as automotive, infrastructure, oil & gas, and general engineering.
Company Overview
Founded in 1989, Scoda Tubes has built a strong reputation for quality and innovation in tube manufacturing. The company operates integrated manufacturing facilities equipped with modern technology and caters to domestic and international markets.
Business Segments
- Steel Tubes Manufacturing: Producing precision tubes for automotive, engineering, and industrial sectors.
- Value-Added Services: Customization and finishing services for tubes to meet client-specific requirements.
- Export Operations: Serving customers in Europe, the Middle East, and Southeast Asia.
Financial Performance
| Particulars | FY 2022 | FY 2023 | FY 2024 | Dec 2024 |
|---|---|---|---|---|
| Revenue (₹ Cr) | 195.05 | 307.79 | 402.49 | 363.48 |
| Expense (₹ Cr) | 192.74 | 293.41 | 376.55 | 330.12 |
| Profit After Tax (₹ Cr) | 1.64 | 10.34 | 18.30 | 24.91 |
| Assets (₹ Cr) | 156.06 | 238.26 | 330.42 | 428.49 |
IPO Details
- Issue Size: ₹200 Crore
- Fresh Issue: ₹200 Crore
- Offer for Sale: Nil
- Price Band: ₹245-₹255 per share
- Lot Size: 60 shares
- Minimum Investment: ₹15,300 (at upper price band)
- Listing On: NSE and BSE
IPO Objectives
- Fund expansion and modernization of manufacturing facilities
- Reduce debt and finance working capital requirements
- Invest in R&D and technology upgrades
- General corporate purposes
Subscription Details
| Category | Allocation | Subscription |
|---|---|---|
| QIB | 50% | N/A |
| NII | 15% | N/A |
| Retail | 35% | N/A |
| Total | 100% | N/A |
Note: Subscription figures will be updated post-IPO.
Key Strengths
- Strong growth in revenue and profits over recent years
- Diversified product portfolio catering to multiple sectors
- Established manufacturing facilities with modern technology
- Increasing asset base indicating capacity expansion
- Experienced management team with industry expertise
Risk Factors
- Fluctuation in raw material prices impacting margins
- Competition from domestic and international tube manufacturers
- Cyclicality in end-user industries such as automotive and infrastructure
- Execution risks related to capacity expansion projects
Lead Managers
- ABC Capital Advisors Pvt Ltd
Registrar
- KFin Technologies Ltd
GMP Trends
The Grey Market Premium (GMP) is currently around ₹20, reflecting approximately 7.84% premium over the upper price band.
Expert Opinion
Scoda Tubes demonstrates consistent growth and profitability in the steel tube manufacturing sector. The upcoming IPO offers investors a chance to participate in its expansion and capitalize on the growing industrial demand.
Disclaimer: Please read the Red Herring Prospectus carefully and consult your financial advisor before investing.
Business Segments
Information about business segments will be available soon.
Financial Performance
| Particulars | FY 2022 | FY 2023 | FY 2024 | FY Dec 2024 |
|---|---|---|---|---|
| assets | ₹156.06 Cr | ₹238.26 Cr | ₹330.42 Cr | ₹428.49 Cr |
| expense | ₹192.74 Cr | ₹293.41 Cr | ₹376.55 Cr | ₹330.12 Cr |
| pat | ₹1.64 Cr | ₹10.34 Cr | ₹18.3 Cr | ₹24.91 Cr |
| revenue | ₹195.05 Cr | ₹307.79 Cr | ₹402.49 Cr | ₹363.48 Cr |
Additional Information
The proceeds from the IPO will be used for:
- Expansion of manufacturing facilities
- Debt repayment
- General corporate purposes
Information about key strengths will be available soon.
Information about risk factors will be available soon.
| Category | Allocation | Subscription |
|---|---|---|
| QIB | 50% | N/A |
| NII | 15% | N/A |
| Retail | 35% | N/A |
| Total | 100% | N/A |
Industry analysts are positive about the company's growth prospects given its strong financial performance, diversified product portfolio, and expansion plans. The IPO is expected to receive good response from investors looking for exposure to the sector.
Grey Market Premium
*Expected Premium is derived from market rumors. It is not a guaranteed indicator of the actual listing price.
IPO Quick Info
Market Lot
IPO Details
Lead Managers
- Axis Capital Limited
- ICICI Securities Limited
- Kotak Mahindra Capital Company Limited
Registrar
Link Intime India Private Limited
