Scoda Tubes IPO: Price band declared at ₹130 to ₹140; GMP, date, other details you should know
Scoda Tubes IPO: The price band for the initial public offer (IPO) of Scoda Tubes has been set at ₹ 130-140 per share. The company aims to raise ₹ 275 crore through the offering.
The IPO will be open for bidding from Wednesday, May 28 to Friday, May 30. Of the total offering, 50% is reserved for Qualified Institutional Buyers (QIBs), 35% for Retail Investors, and 15% for Non-Institutional Investors (NIIs).
Gujarat-based Scoda Tubes is entirely a fresh issue of equity shares aggregating up to ₹ 275 crore. Regarding the IPO proceeds, up to ₹ 105 crore will be used for capital expenditures to expand the production capacity of seamless tubes and pipes by 10,000 million tonnes per annum and welded tubes and pipes by 12,130 MTPA. ₹ 110 crore will be used for incremental working capital requirements.
The remaining funds will be used for general corporate purposes. Meanwhile, the GMP of the Scoda Tubes IPO, as per the market sources, on Friday was 0.
Scoda Tubes Limited is an Indian manufacturer of stainless-steel tubes and pipes, catering to both domestic and international markets. Its product range includes seamless and welded tubes and pipes, polished tubes, stainless steel seamless and welded U-tubes, as well as instrumentation tubes.
The company serves a wide array of industries, such as oil and gas, chemicals, fertilizers, pharmaceuticals, power, automobiles, EPC, and railways. In the domestic market, Scoda Tubes distributes its products primarily through a network of stockists, while in international markets like Italy, Germany, Austria, and Eastern Europe, it operates through both direct sales and international stockists.
Scoda Tubes aims to grow by expanding its reach and strengthening its distribution network. However, investors should be aware of key risks such as high dependence on a few major customers and stockists, which exposes the company to concentration risk.
Additionally, the business operates in a competitive and cyclical industry that is sensitive to raw material price fluctuations and global economic conditions. Any disruption in its supply chain or decline in demand from key sectors could significantly impact its performance.
Scoda Tubes has recorded profit of ₹ 24.9 crore on revenue of ₹ 361.2 crore for the nine months period ended December 2024. Profit for the fiscal 2024 grew by 77 per cent to ₹ 18.3 crore and revenue increased by 31 per cent to ₹ 400 crore compared to previous financial year.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
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