Scoda Tubes Limited is a manufacturer of stainless-steel tubes and pipes. The IPO is a fresh issue and is set to raise Rs. 220 crore.
IPO opens
May 28, 2025
IPO Closes
May 30, 2025
IPO Size (Rs.)
₹220.00 Cr
Breakup
fresh issue only
Face Value:
₹ 10
IPO Price Rs :
₹130 to ₹140 per share
Minimum Lot
100 Shares
Listing At
NSE , BSE (mainboard)
QIB
~50%
NII Quota
~15%
Retail Quota
~35%
BRLM
Monarch Networth Capital
Registrar
MUFG Intime India Pvt Ltd
Scoda Tubes IPO:
Scoda Tubes was incorporated on November 10, 2008.
Scoda is a stainless-steel tubes and pipes manufacturer based in India having over 14 years of experience.
Their products are broadly categorised into:
Seamless tubes/pipes;
Welded tubes and pipes, under 5 product lines,
Stainless steel seamless pipes;
Stainless steel seamless tubes;
Stainless steel seamless “U” tubes;
Stainless steel instrumentation tubes;
Stainless steel welded tubes
Scoda has 1 manufacturing plant which is strategically located at Kadi, Mehsana, Gujarat in close proximity of around 200 kilometres from the Mundra port. The company possesses 21 production lines for its products (18 production lines of seamless tubes and pipes, 2 production lines of welded tubes and pipes, and 1 production line for hot piercing.
Samarth Patel, Jagrutkumar Patel, Ravi Patel, Saurabh Patel and Vipulkumar Patel are the company promoters.
Financials : Scoda Tubes IPO
Particulars Rs. Cr
2024(09)
2024(12)
2023(12)
2022(12)
Equity Share Capital
44.2
1.28
1.28
1.28
Reserves as stated
99.35
62.33
44.03
33.69
Net Worth as stated
143.55
63.61
45.31
34.98
Total Borrowing
202.16
202.66
139.31
109.89
Revenue from Operations
361.17
399.86
305.13
194.03
Revenue Growth (%)
–
31.05%
57.26%
–
EBITDA
60.63
58.79
34.78
9.99
EBITDA Margin (%) as stated
16.79%
14.70%
11.40%
5.15%
Net Profit for the period
24.91
18.3
10.34
1.64
PAT Margin (%)
6.90%
4.58%
3.39%
0.84%
EPS – Basic & Diluted (₹)
6.08^
4.6
2.6
0.72
NAV (₹)
32.48
15.99
11.39
8.79
ROCE (%)
13.67%
15.92%
12.62%
5.84%
ROE (%)
17.36%
28.77%
22.81%
4.68%
Post issue Share Capital
59.9
FV
10
IPO price
140
EPS Fy24
3.06
PE (FY24)
45.83
EPS Fy25 (ann)
5.54
PE (FY25 ann)
25.25
Market cap in cr.
839
Market cap / Sales
2.32
Anchors: Scoda Tubes IPO
The anchor portion comprised 48 lakh shares, which is 30% of the total issue size.
Salient Points: Scoda Tubes IPO
Indian stainless steel sector is experiencing robust growth, with domestic production rising at a 10% CAGR from FY20 to FY24, and increasing global demand for stainless steel tubes and pipes
Utilization of Proceeds
Capital Expenditure (Expansion): ₹76.99 crore (35%)
Working Capital: ₹110 crore (50%)
General Corporate Purposes: ₹33 crore (15%)
IPO proceeds will be used for capacity expansion and working capital, positioning the company to capitalize on rising demand both domestically and globally.
Their products are used by a diverse range of customers like engineering companies, EPC and industrial companies engaged in Oil and Gas, Chemicals, Fertilisers, Power, Pharmaceuticals, Automotive, Railways and Transportation sectors.
The company has received approvals from various esteemed organizations such as Laxmi Organic Industries Ltd, GNFC, Krishak Bharati Co-op Ltd, Triveni Turbine, HPCL, BHEL, etc. and major domestic public sector clients such as Western, Central, Eastern and Northeastern Railway, Modern Coach Factory, Rail Coach Factory, Department of Atomic Energy, etc.
The company exported its products to over 16 countries in fiscal 2024.
Peers:
Name of the Companies
Revenue (Cr)
EBITDA Margin
PAT Margin
P/E
D/E
Mcap /sales
Scoda Tubes Limited
400 (FY24)
14.70%
4.58%
19.32(47)
1.4
2.32
Ratnamani Metals & Tubes Limited
5,186
16%
10.40%
37.1
0.04
9.07
Venus Pipes & Tubes Limited
959
17%
9.69
30.6
0.37
2.96
Welspun Specialty Solutions Limited
959
8%
–
0.05
3.02
Suraj Limited
234
12%
5.69 %
52.1
0.39
2.96
Issue price is at a P/E of 25x. Based on FY24 earnings, the P/E stands at 45x
Scoda Tubes specializes in both seamless and welded stainless-steel tubes and pipes, serving critical and diverse sectors such as oil & gas, chemicals, power, railways, and pharmaceuticals. Its backward integration through a hot piercing mill enhances product quality and operational efficiency.
I had done backward integration of 20,000 MTPA mother hollow capacity in May 2022, at outlay of Rs. 60 cr, This is reflected in improved margins.
In 2022 anti-dumping duty on stainless steel seamless tubes and pipes imports from China was imposed for 5 years.
Scoda Tubes is going for capital expenditure of Rs. 105 cr, to double seamless capacity to 20,068 MT and increase welded capacity by 13x to 13,150 MT.
Rs. 55 cr raised via pre-IPO placement at Rs. 125 per share in Oct 2024 to Malabar and Carnelian Fund
I intend to apply in Scoda Tubes IPO. Margin outlook is positive with backward integration already done and planned expansion. Import duty on China for seamless tube is also helpful,
GMP as per social media is Rs. 22 (15.7%)
This post is exploratory and educational purposes only.
Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.
