Scoda Tubes IPO Day 1: Issue subscribed 94% so far, retail portion booked 75%

The initial public offering (IPO) of Scoda Tubes, which opened for subscription today, May 28, will close on May 30. On its first day, the issue has been subscribed 0.94 times as of 1:15 pm, according to NSE data.

The Qualified Institutional Buyers (QIBs) category was subscribed 1.37 times, receiving bids for 46.24 lakh shares against the 33.84 lakh shares reserved for them. Non-Institutional Investors (NIIs) have bid for 20.92 lakh shares, subscribing 0.82 times the 25.38 lakh shares on offer so far.

Meanwhile, the Retail Individual Investors (RIIs) portion saw a subscription of 0.75 times, with 44.33 lakh shares bid for against the quota of 59.23 lakh shares.

Scoda Tubes IPO details

The stainless steel tubes and pipes manufacturer aims to raise Rs 220 crore entirely through a fresh issue of shares, priced in the band of Rs 130 to Rs 140 per share. Scoda Tubes is offering between 1.57 crore and 1.69 crore shares, with listings planned on both the NSE and BSE.

Retail investors can bid for a minimum of one lot of 100 shares, amounting to Rs 14,000 at the upper price band. The allotment is expected to be finalised by June 2, with the stock debuting on exchanges on June 4.

Scoda Tubes: Should you subscribe? Here's what analysts say

SBI Securities holds a positive outlook, highlighting the company’s strong financial performance. At the upper end of the price band, Scoda Tubes is valued at a P/E of 21.8x and EV/EBITDA of 9.6x, based on annualised 9MFY25 results. The brokerage recommends investors subscribe at the cut-off price.

Vaqarjaved Khan of Angel One describes the IPO as a “decent opportunity for investors looking to play the infrastructure and industrial growth story in India,” while advising caution on competitive pressures and cash flow monitoring.

Bajaj Broking takes a neutral stance, pointing to challenges such as working capital constraints, margin pressures, and broader market risks. According to their analysts, the medium-term performance will depend on improved cash flow management and sustained infrastructure demand.

Scoda Tubes: Company background and financials

Incorporated in 2008, Scoda Tubes manufactures stainless-steel seamless and welded tubes supplied to sectors including oil & gas, chemicals, power, railways, and pharmaceuticals. Operating from Mehsana, Gujarat, it has backward integration through a hot piercing mill and exports to 11 countries, with exports accounting for over 28 per cent of total revenue in 9MFY25.

The company’s revenue surged from Rs 194 crore in FY22 to Rs 400 crore in FY24. Profit after tax rose from Rs 1.63 crore in FY22 to Rs 18.3 crore in FY24. EBITDA margins improved from 5.15 per cent in FY22 to 14.7 per cent in FY24, and return on equity (RoE) stood at 28.77%.

However, cash flow efficiency remains a concern, with operating cash flow at just Rs 2.26 crore in FY24 despite rising profits. The firm also faces concentration risk due to dependence on select stockists for domestic and international sales. Moreover, planned capacity expansion for welded pipes comes amid currently low utilisation levels.