IPO Details
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IPO Size
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Schedule of Scoda Tubes Ltd
Start date
End date
Allotment of bids
Refund Initiation
Listing on exchange
About Scoda Tubes Ltd 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 ₹275 crore.
Objectives of Scoda Tubes Ltd 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
Scoda Tubes Ltd IPO Valuation
| Detail | Information |
|---|---|
Upper Price Band | TBA |
Fresh Issue Size | ₹275 crore |
Offer for Sale | NA |
EPS (in ₹) for FY24 | 4.60 |
Scoda Tubes Ltd Share Offer and Subscription Details
| Investor Category | Shares Offered |
|---|---|
QIBs | Not more than 50% of the offer |
Non-institutional Bidders | Not less than 15% of the offer |
Retail Individual Bidders | Not less than 35% of the offer |
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.
Scoda Tubes Ltd Strengths
Specialised production of stainless-steel tubes and pipes
Scoda Tubes Ltd is a tubes and pipes manufacturer, specialising in the production of seamless and welded products in a single metal category, i.e., stainless steel. With its expertise in this segment, it’s able to offer various specialised stainless-steel tubes and pipes products in terms of length, thickness and grades as required or preferred by customers.
International accreditations and product approvals
The company follows internationally recognised standard manufacturing practices, including ASTM, ASME, and EN standards. Its manufacturing facility benefits from quality benchmarking certifications, including ISO 9001:2015, 14001:2015 and 45001:2018 certified by TUV SUD South Asia Private Ltd.
Customer diversification & international presence
The company’s products cater to diversified industrial companies engaged in oil and gas, chemicals, fertilisers, power, pharmaceuticals, automotive, railways and transportation sectors, both domestically and internationally. In International markets, the company supplies its products through a stockist. In the United States, it has a stockist authorised to exclusively sell their products in the United States market.
Risks of Scoda Tubes Ltd
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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.
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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.
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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.
All Financial Information about Scoda Tubes
Particulars (in Rs. crores)
Particulars (in Rs. crores)
Comparison with peers
| Parameter for FY 24 | Scoda Tubes Ltd | Ratnamani Metals & Tubes Ltd | Venus Pipes & Tubes Ltd | Welspun Specialty Solutions Ltd | Suraj Ltd |
|---|---|---|---|---|---|
Revenue from Operations (in ₹ crore) | 399.861 | 5059.090 | 802.198 | 696.670 | 330.665 |
P/E | NA | 40.82 | 51.20 | 44.77 | 38 |
Return on Net Worth (in %) | 28.77 | 19.90 | 21.17 | 67.11 | 17.57 |
EPS in ₹ | 4.60 | 89.18 | 42.36 | 1.18 | 11.72 |
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.
Scoda Tubes Ltd Profit and Loss
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Total Income (in ₹ crore) | 402.488 | 307.785 | 195.053 |
PAT Margin (in %) | 4.55 | 3.39 | 0.84 |
EBITDA (in ₹ crore) | 58.791 | 34.784 | 9.989 |
EPS in ₹ | 4.60 | 2.60 | 0.72 |
Scoda Tubes Ltd Cash Flow Statement
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Profit After Tax (in ₹ crore) | 18.30 | 10.336 | 1.636 |
Net Cash Flow from Operating Activities (in ₹ crore) | 2.264 | 20.346 | (46.865) |
Net Cash used in Investing Activities (in ₹ crore) | (46.576) | (38.523) | (33.436) |
Net Cash from Financing Activities (in ₹ crore) | 44.265 | 17.936 | 80.157 |
Cash and Cash Equivalents at the End of the Financial Year (in ₹ crore) | 0.007 | 0.054 | 0.294 |
How to Check Allotment Status of Scoda Tubes Ltd 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 Ltd 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.
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.
Scoda Tubes Ltd IPO FAQs
What is the Scoda Tubes Ltd IPO?
The IPO of Scoda Tubes Ltd is an entirely fresh issue aggregating up to ₹275 crore. The IPO has no offer for sale. It’s a 100% book-built issue.
When will the IPO of Scoda Tubes Ltd go live?
The exact dates of the IPO are yet to be announced. However, it’s expected to go live soon.
