Scoda Tubes Limited, a Gujarat-based stainless steel pipes and tubes maker, is hitting the market with a mainboard IPO The IPO price band is set at ₹130–₹140 per share, aiming to raise about ₹220 crore via a fresh issue. Anchor book-building begins May 27, 2025, ahead of the public offer opening May 28 and closing May 30. The shares are to list on BSE and NSE around June 4, 2025.
Background of the company
Founded in 2008, Scoda Tubes Ltd. has spent 15+ years building a business in stainless-steel tubes and pipes. It manufactures both seamless and welded steel products under five major product lines (seamless pipes, seamless tubes, U-tubes, instrumentation tubes, and welded tubes/U-tubes). This range serves diverse industries, from oil & gas and chemicals to fertilisers, power plants, pharmaceuticals, automotive and railways.
Notably, Scoda Tubes operates its own hot piercing mill to create “mother hollow” stock in-house, enabling backward integration and cost control. It sells domestically through a network of authorised stockists and has an export footprint (to Europe, the U.S., etc.).
Over the last few years, Scoda has won approvals and long-term deals with government and large corporate clients (BHEL, Railways, HPCL, NTPC, etc.), underscoring its product quality and reliability. The company also holds ISO 9001, 14001 and 45001 certifications and PED/AD2000 marks, reflecting robust quality and safety standards.
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Why Scoda Tubes is going for IPO
The objectives of the Scoda Tubes IPO are straightforward: raise capital for growth. According to company filings, the issue proceeds will primarily fund capacity expansion of both seamless and welded tube lines (new furnace and mill projects).
Roughly ₹105 crore is earmarked for these capex plans. A large slice (about ₹110 crore) will shore up incremental working capital, important for a steel maker dealing with inventory and receivables fluctuations. The balance of funds (roughly the remaining ₹60–₹65 crore) is slated for general corporate purposes, which might include repaying high-cost debt or other expenses.
In short, Scoda Tubes is leveraging this IPO to turbocharge its growth trajectory. By boosting production capacity and ensuring ample working capital, the company aims to scale up quickly in a growing market (stainless steel tube demand is rising domestically and globally).
Timeline of Scoda Tubes IPO
| Detail | Information |
| Issue size | ~₹220 crore (Fresh issue) |
| Price band | ₹130 – ₹140 per share |
| Issue dates | Open: May 28, 2025; Close: May 30, 2025 |
| Anchor date | May 27, 2025 (one-day book-building) |
| Listing date | June 4, 2025 (BSE & NSE) |
| Retail/QIB/NII | 35% / 50% / 15% |
| Lot size | 100 shares (₹14,000 @ ₹140) |
| Registrar | MUFG Intime India Pvt. Ltd |
| Lead Manager | Monarch Networth Capital Ltd |
Year-on-year financial performance
Scoda Tubes have been growing quickly. It more than doubled its revenues in two years (FY22 to FY24) and delivered faster profit growth (PAT rose ~10x from FY22 to FY24). The balance sheet also expanded: total assets grew to over ₹330 crore by FY24 and ₹428 crore by Dec 2024.
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The table below summarises the key figures:
| Year | Revenue (₹ Cr) | Total Expenses (₹ Cr) | PAT (₹ Cr) | Total Assets (₹ Cr) |
| FY22 | 195 | 193.2 | 1.77 | – |
| FY23 | 308 | 298.2 | 9.41 | 238.26 |
| FY24 | 402.49 | 384.2 | 18.3 | 330.42 |
| 9M FY25 (Dec 31, 2024) | 361.20 | 338.6 | 24.91 | 428.49 |
IPO shareholding pattern
The Scoda Tubes IPO is entirely a fresh issue, so pre-IPO shareholders are all promoters/founders, and post-IPO public ownership rises.
| Shareholder | Pre-IPO Holding | Post-IPO Holding |
| Promoters | 100% | 74% |
| Public (incl. QIB/HNI/Retail) | 0% | 26% |
Why should you invest in Scoda Tubes IPO?
Advantages:
- Scoda Tubes has been on a sharp growth path, revenues jumped ~31% to ₹402 cr in FY24, and it operates in a growing niche.
- The stainless steel tubes and pipes market is expanding: domestic demand rose from 0.23 MT to 0.32 MT between FY20–24 (CAGR ~9%), and global demand is also climbing.
- Scoda’s backward integration (in-house piercing mill) and approvals from big PSUs (BHEL, NTPC, Railways, etc.) give it a competitive edge.
- It serves a diverse set of industries (oil & gas, chemicals, fertilisers, power, pharma, automotive, railways), mitigating single-sector risk.
- Quality credentials (ISO/PED/AD2000) and 15+ years of experience add credibility.
- In short, a scalable business with strong clients and expansion plans could reward patient investors if executed well.
Disadvantages:
- Scoda Tubes is in a cyclical and highly competitive industry.
- Its fortunes depend on big engineering projects and raw material costs, which can swing with the economy.
- Heavy dependence on a few major customers and distribution partners, so losing one could dent revenue significantly.
- The stainless pipes market is price-sensitive and raw-material-driven, so any metals price spike or global slowdown could hurt margins.
- Finally, the IPO pricing (up to ₹140) should be weighed against growth prospects; early investors should decide if the ₹220–275 cr valuation is justified by future earnings.
Bottomline
Scoda Tubes IPO is a fresh issue aimed at fueling rapid growth in an expanding stainless-steel tubes market. The company has delivered strong top-line growth and is backed by experienced promoters and certifications.
For investors, the IPO offers a way into a niche steel maker with solid fundamentals. However, consider the usual steel-sector risks (cyclicality, concentrated customers) before jumping in.
Overall, Scoda Tubes IPO could be an attractive long-term play for growth-oriented portfolios, provided you’re comfortable with industry swings and execution risks.
