Scoda Tubes made its stock market debut on Wednesday, listing flat at its issue price of Rs.140 on both NSE and BSE, contrary to expectations of a premium listing driven by strong grey market buzz predicting a 14% gain. Despite the flat opening, the IPO itself had been a major success, oversubscribed by an impressive 57.37 times overall, reflecting robust investor appetite across all segments: retail investors subscribed nearly 21 times, Qualified Institutional Buyers over 72 times, and Non-Institutional Investors more than 121 times.
Founded in 2008 and headquartered in Mehsana, Gujarat, Scoda Tubes manufactures stainless steel seamless and welded tubes and pipes, supplying critical industries like oil and gas, power, and pharmaceuticals, and exporting to 16 countries. The company’s production is strengthened by backward integration through its hot piercing mill.
The IPO proceeds, managed by Monarch Networth Capital Ltd., are earmarked primarily for expanding the company’s production capacity and bolstering working capital.
Financially, Scoda Tubes has demonstrated strong growth. For the nine months ending December 2024, it posted a profit of Rs.25 crore on Rs.361 crore in revenue. For the full fiscal year 2024, profit surged 77% to Rs.18 crore while revenue rose 31% to Rs.400 crore compared to the previous year, underscoring solid operational performance ahead of the public listing.
