The initial public offering of Scoda Tubes Ltd. was subscribed 2.06 times on its first day of bidding on Wednesday, led by demand from non-institutional investors. The portion for retail investors was also oversubscribed.
The grey market premium of the IPO has risen to Rs 23 from Rs 18 earlier, as of 4:00 p.m. on May 28, according to InvestorGain. This implies shares of the company will likely list at Rs 163 apiece, indicating a 16% premium to the upper end of the price band.
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The company announced a price band of Rs 130 to Rs 140 per share for its initial public offering. Scoda Tubes plans to allocate Rs 110 crore for partly funding working capital requirements in fiscals 2026 and 2027.
A sum of Rs 77 crore will be used for capital expenditure toward expanding the production capacity of seamless tubes and pipes by 10,000 million tonnes per annum and welded tubes and pipes by 12,130 MTPA. This involves civil and structural work, site development, plant and equipment and utilities.
Funds raised from the pre-IPO round were also directed towards capex.
The rest of the proceeds will be deployed for general corporate purposes.
Scoda Tubes IPO Details
Issue opens: May 28.
Issue closes: May 30.
Issue price: Rs 130-140.
Fresh issue: Rs 220 crore, reduced from the earlier Rs 275 crore.
Lot size: Minimum 100 shares, and then in multiples thereof.
Scoda Tubes IPO: About The Company
Gujarat-based Scoda Tubes is a stainless-steel tubes and pipes manufacturer, catering to a diverse range of customers like engineering companies, EPCs, 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 km 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 RHP.
In the previous financial year, Scoda Tubes exported to 16 countries, including the US, Germany, the Netherlands, Italy, Spain, and France.
Scoda Tubes IPO: Subscription Status Day One
The IPO has been subscribed 2.06 times as of 5:00 p.m. on Wednesday.
Qualified institutional buyers: 1.4 times.
Non-institutional investors: 2.86 times.
Retail investors: 2.09 times.
Scoda Tubes IPO GMP
The grey market premium of the IPO has risen to Rs 23 from Rs 18 as of 4:00 p.m. on May 28, according to InvestorGain. This implies shares of the company will likely list at Rs 163 apiece, indicating a 16% premium to the upper end of the price band.
It should be noted that GMP, or grey market price, is not an official price quote for the stock and is based on speculation.
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