Scoda Tubes IPO

About Scoda Tubes IPO

The IPO of Scoda Tubes Ltd is a 100% book-built issue comprising a fresh issue with no offer for sale. The fresh issue aggregates up to ₹220 crore. The price band ranges from ₹130 to ₹140. The lot size is 15 equity shares and in batches of 15 thereafter.

The listing of the equity shares will take place on June 4, 2025. The basis of allotment will take place on June 2, 2025. The initiation of refund will take place on June 3, 2025 and the credit of shares to the demat account will take place on June 3, 2025.

Objectives of Scoda Tubes IPO

The company proposes to utilise the net proceeds received from the IPO:

• To meet capital expenditure towards expanding production capacity of seamless and welded tubes and pipes
• To fund the part incremental working capital requirements of the company
• For general corporate purposes

Industry Outlook

Between fiscals 2024 and 2029, the domestic demand for stainless steel pipes and tubes is expected to increase at a CAGR of 6-8% to 0.45-0.47 million tonnes in fiscal 2029. This healthy growth in the demand will primarily be led by strong growths in major end use industries of stainless-steel pipes and tubes such as building and construction, automobile, oil and gas, chemical manufacturing, food and beverage, etc.

Company Information

Scoda Tubes Ltd is a stainless-steel tubes and pipes manufacturer based in India having over 14 years of experience. It markets its products under the brand, Scoda Tubes Limited. Its 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.

Risks of Scoda Tubes IPO

• The company derived 16.26%, 16.33% and 6.70% of its revenue from operations from its top customer and 47.77%, 45.04% and 39.76% of its revenue from operation from its top ten customers in Fiscal 2024, Fiscal 2023 and Fiscal 2022, respectively. Any loss of its single largest customer or any number of top ten customers or a significant reduction in purchases by any of them could adversely affect its business, results of operations and financial condition.

• The company’s business and profitability are substantially dependent on the demand for its products from engineering, EPC and industrial companies, stockists, in and outside of India. Any reduction in the activity and expenditure levels in such customers may adversely affect its business, prospects, results of operations and financial condition.

• The company’s business and profitability are substantially dependent on the availability and cost of raw materials. It’s dependent on third-party suppliers/manufacturers/stockists for meeting its raw material requirements. Any disruption to the timely and adequate supply, or volatility in the prices of raw materials may adversely impact its business, results of operations and financial condition.

IPO Registrar and Book Running Lead Manager

Link Intime India Pvt Ltd is the registrar of Scoda Tubes Ltd IPO. Monarch Networth Capital Ltd is the book running lead manager of the IPO.

Business Model

Scoda Tubes Ltd manufactures stainless-steel tubes and pipes. Its products are broadly categorised into:

• Seamless tubes/pipes
  
• Welded tubes and pipes
  

The welded tubes and pipes are further categorised into five product lines namely:

• Stainless steel seamless pipes
  
• Stainless steel seamless tubes
  
• Stainless steel seamless “U” tubes
  
• Stainless steel instrumentation tubes
  
• Stainless steel welded tubes and “U” tubes
  

Company Growth Trajectory

Scoda Tubes Ltd has demonstrated consistent growth in terms of revenues and profitability. Its revenue from operations has grown from ₹12.846 crore in Fiscal 2016 to ₹399.861 crore in Fiscal 2024. Its profit after tax has grown from ₹0.123 crore in Fiscal 2016 to ₹18.3crore in Fiscal 2024.

Market Position

Scoda Tubes Ltd has an experience of over 14 years. Currently, its hot piercing mill has a production capacity of 20,000 MT per annum. It caters to both the domestic as well as the international markets. It supplies its products through stockists in Italy, Germany, Austria and Eastern European markets.

How to Check Allotment Status of Scoda Tubes IPO?

You can check the allotment status of Scoda Tubes Ltd IPO through the BSE website or through its registrar’s portal. To check status on BSE website:

• Visit the BSE website
• Click on “Investor Services” and choose “Application Status Check”
• Choose the issue type — Equity or Debt
• Select the Issue Name from the drop-down.
• Enter your application number or PAN number
• Check the box that says “I’m not a Robot” and click on “Search” to know the allotment status

To know the allotment status through the registrar’s portal:

• Visit the website of Link Intime India Private Ltd
• Choose ‘Public Issues’ from Investor Services dropdown
• Choose the name of the company from ‘Select Company’ dropdown
• Enter any of these - PAN Number, Application Number, DP/Client ID, Account Number / IFSC
• Click on Submit to check the status

How to Apply for Scoda Tubes IPO?

To apply for the IPO of Scoda Tubes Ltd:

• Step 1: Log in to your Kotak Securities Demat account: Log in to your Demat account to access IPO investments. Next, select the current IPO section.
• Step 2: Specify IPO details: Enter the number of lots and the price you wish to apply for.
• Step 3: Enter UPI ID After entering your UPI ID, click submit. This will place your bid with the exchange.
• Step 4: Mandate Notification: Your UPI app will receive a mandate notification to block funds.
• Step 5: Approve Request Your funds will be blocked once you approve the mandate request on your UPI.