You’ve probably heard the buzz—Scoda Tubes is going public. But what’s all the noise really about? Is this just another stainless-steel manufacturer riding the IPO wave, or is there something more to it? Let’s break it down.
Also read: Should You Invest in IPO? A Beginner’s Guide to IPO Investment in India
Scoda Tubes Limited might not be a household name yet, but in the world of stainless steel manufacturing, it’s already built a solid reputation. Headquartered in Mehsana, Gujarat, the company has been operating for over 14 years, steadily growing its presence in both domestic and international markets.
Its core products include high-quality stainless steel seamless and welded tubes, instrumentation tubes, and U-tubes with critical components used across industries like oil and gas, chemicals, power, construction, and pharmaceuticals.
What really sets Scoda apart is its global footprint. The company exports to over 16 countries, including regions in Europe, Southeast Asia, Africa, and the Middle East. This international demand speaks volumes about the trust placed in Scoda’s manufacturing capabilities and quality standards.
With a fully integrated production facility, Scoda Tubes has positioned itself as a dependable supplier in its sector. Now, with an IPO on the table, the company is looking to shift gears from being a reliable mid-sized player to a globally recognised force in stainless steel tubing.
| IPO Date | May 28, 2025 to May 30, 2025 |
| Listing Date | [.] |
| Face Value | ₹10 per share |
| Issue Price Band | ₹130 to ₹140 per share |
| Lot Size | 100 Shares |
| Total Issue Size | 1,57,14,286 shares(aggregating up to ₹220.00 Cr) |
| Fresh Issue | 1,57,14,286 shares(aggregating up to ₹220.00 Cr) |
| Issue Type | Bookbuilding IPO |
| Listing At | BSE, NSE |
| Share Holding Pre Issue | 4,41,94,700 shares |
For more information, read the full Scoda Tubes IPO RHP.
| Period Ended | 31 Dec 2024 | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
| Assets (₹ Cr.) | 428.49 | 330.42 | 238.26 | 156.06 |
| Revenue (₹ Cr.) | 363.48 | 402.49 | 307.79 | 195.05 |
| Profit After Tax (₹ Cr.) | 24.91 | 18.30 | 10.34 | 1.64 |
| Net Worth (₹ Cr.) | 143.55 | 63.61 | 45.31 | 34.98 |
| Reserves and Surplus (₹ Cr.) | 99.35 | 62.33 | 44.03 | 33.69 |
| Total Borrowing (₹ Cr.) | 202.16 | 202.66 | 139.31 | 109.90 |
The Grey Market Premium (GMP) for the Scoda Tubes IPO has shown volatility. On May 28, 2025, the GMP for the Scoda Tubes IPO was reported between ₹17 and ₹18 by major trackers, translating to a 12–13% premium over the upper price band. Some sources also mention a GMP of ₹24, but the prevailing figure on the day of IPO opening was ₹17–₹18
This indicates a positive market sentiment. However, it’s essential to note that GMPs are unofficial and can fluctuate significantly, so they should not be the sole basis for investment decisions.
Also read: What is IPO in Stock Market: Your Guide to Participating in Initial Public Offerings in India
So, what exactly does Scoda Tubes plan to do with the IPO funds? According to the company’s filings and market disclosures, the entire amount raised through this fresh issue of equity shares will go toward fuelling Scoda’s next phase of growth.
Here’s a closer look at where the funds are headed:
1. Capital Expenditure for Capacity Expansion
The company intends to invest a significant chunk of the IPO proceeds into upgrading and expanding its existing manufacturing facility in Mehsana, Gujarat. This includes procuring new machinery, modernising infrastructure, and potentially adding new product lines.
Why does this matter? In a global market where demand for stainless steel tubes is steadily climbing, having the ability to scale up production quickly can be a game-changer.
2. Working Capital Requirements
Scoda plans to use a portion of the proceeds to strengthen its working capital base. This means better cash flow, smoother operations, and fewer financial hiccups when it comes to buying raw materials, fulfilling large orders, or managing day-to-day expenses.
For a company exporting to over 16 countries, timely execution and supply chain agility are non-negotiables. By boosting its working capital reserves, Scoda is essentially future-proofing its operations against market volatility and order surges.
3. General Corporate Purposes
Having a cushion for general corporate use also signals that Scoda isn’t just looking at immediate expansion—it’s building in room for adaptability, so it can respond to opportunities or challenges as they arise post-listing.
On the first day of bidding, the Scoda Tubes IPO was fully subscribed, with a subscription rate of 1.48 times. This robust demand was primarily driven by retail investors.
Scoda Tubes also raised ₹65 crore from six anchor investors on May 27, 2025, ahead of its IPO opening. The shares were allotted at the upper price band of ₹140, reflecting strong institutional confidence. This anchor participation signals robust demand, providing added assurance to retail investors about the IPO’s prospects.
Scoda Tubes’ IPO has garnered significant attention, and for good reason. With a solid track record, diverse product portfolio, and plans for expansion, the company presents a compelling investment opportunity. However, potential investors should consider the financial nuances and market volatility before making a decision. As always, conducting thorough research is recommended.
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