Scoda Tubes Limited, a prominent manufacturer of stainless steel seamless and welded tubes and pipes, is launching its ₹220 crore IPO from May 28 to May 30, 2025, with a price band of ₹130 – ₹140 per share. The company, based in Gujarat, operates a modern facility with significant production capacity and serves a diverse client base across industries such as oil and gas, chemicals, power, and engineering.
₹20
₹140
₹140
Expert Opinions
Market sentiment for Scoda Tubes IPO is constructive, supported by the company’s robust revenue growth and improved profitability amid a revived primary market environment. Scoda Tubes’ strengths include its established position in stainless steel pipes and tubes, a diversified customer base across global markets, and adherence to international quality standards. For FY2024, the company posted a Return on Equity (ROE) of 28.77%, ROCE of 15.92%, and Net Asset Value (NAV) of ₹15.99, reflecting efficient capital deployment and strong fundamentals.
However, risks include a high debt-to-equity ratio, raw material price volatility, and exposure to cyclical demand in core sectors. From a long-term investment perspective, the planned use of Scoda Tubes IPO proceeds for capacity expansion and modernization could enhance competitiveness, but sustained margin improvement and prudent leverage management will be key for value creation as the company scales.
Investor Considerations
Scoda Tubes IPO has demonstrated robust financial growth, with revenue rising from ₹195.05 crore in FY2022 to ₹402.49 crore in FY2024 and a PAT margin improving to 4.58%. The stainless steel tubes and pipes sector benefits from infrastructure and industrial demand, both in India and globally, supporting a positive outlook. For FY2024, the company reports a strong Return on Net Worth (RoNW) of 28.77%, but a high debt/equity ratio of 3.19 signals elevated leverage, which could pressure future margins.
Growth prospects are anchored in capacity expansion and a diversified client base across domestic and export markets. However, risks include raw material price volatility, customer concentration, and cyclical demand from key sectors. Short-term investors may face volatility due to high leverage, while long-term investors could benefit if Scoda Tubes IPO proceeds are utilized effectively and the company manages debt prudently and sustains operational efficiency as it scales.
| Date | GMP | Trend |
|---|---|---|
| 03 Jun 2025 18.53 | ₹20 | --- |
| 02 Jun 2025 11.00 | ₹20 | --- |
| 31 May 2025 11.46 | ₹20 | --- |
| 30 May 2025 18.19 | ₹20 | Down |
| 29 May 2025 15.31 | ₹22 | Down |
| 28 May 2025 16.14 | ₹23 | Up |
| 27 May 2025 10.54 | ₹22 | Up |
| 26 May 2025 12.47 | ₹18 | Up |
| 25 May 2025 11.32 | ₹16 | --- |
| 24 May 2025 10.59 | ₹16 | Up |
| 23 May 2025 13.32 | ₹8 | Up |
| 22 May 2025 10.51 | ₹00 | --- |
FAQs
The Grey Market Premium showed poor accuracy in predicting Scoda Tubes IPO’s listing performance. While the GMP of ₹20 predicted a positive premium of 14.29% over the issue price, the stock actually listed flat with no gains or losses. With a significant prediction error of 12.50%, the GMP completely failed to predict the flat listing, demonstrating its unreliability as a price predictor in this case.
Scoda Tubes IPO Current GMP is ₹20.
Scoda Tubes IPO Expected Returns is 14.29%.
Scoda Tubes IPO estimated listing price is ₹160.