Gujarat-based Scoda Tubes Ltd. has announced a price band of Rs 130 to Rs 140 per share for its upcoming initial public offering. Investors can place bids starting from a minimum of 100 shares and in multiples thereafter.
The company had filed for a Rs 275 crore maiden offer. The offer size was reduced to Rs 220 crore following a pre-IPO placement round. The IPO consists only of fresh issues and no offer for sale, according to the red herring prospectus.
Proceeds to the extent of Rs 77 crore will be used for capital expenditure towards expanding production capacity of seamless tubes and pipes. Another Rs 110 crore will be utilised for funding the part incremental working capital requirements general of the company.
As on Dec. 31, 2024, the aggregated outstanding borrowings of the company amounted to Rs 202.2 crore, including promoter loans worth Rs 18-20 crore.
The Scoda Tubes IPO will be managed by Monarch Networth Capital Ltd. and MUFG Intime India Pvt.
About Scoda Tubes
Scoda Tubes is a stainless-steel tubes and pipes manufacturer, catering to 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.
The company has one manufacturing plant in Mehsana, Gujarat, which is in close proximity of around 200 kilometres from the Mundra port. Currently, the plant has a total installed capacity of 20,000 MTPA of mother hollow, 10,068 MTPA of seamless products, and 1,020 MTPA of welded products, according to the DRHP.
In the previous financial year, Scoda Tubes exported to 16 countries, including the US, Germany, Netherlands, Italy, Spain, and France.
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