Scoda Tubes IPO: Check latest subscription status on day 2; latest GMP & more

The initial public offering (IPO) of Scoda Tubes saw a strong demand from investors during the second day of the bidding process, majorly from individual bidders as the issue was fully-booked in the last first three hours. The issue was booked more than 2.2 times on day one.

Scoda Tubes is selling its shares in the price band of Rs 130-140 apiece. Investors can apply for a minimum of 100 shares and its multiples thereafter. It is looking to raise Rs 220 crore via IPO, which is entirely a fresh share sale of up to 1,57,14,286 equity shares.

According to the data, the investors made bids for 5,95,14,700 equity shares, or 5.02 times, compared to the 1,18,46,169 equity shares offered for the subscription by 1.30 pm on Thursday, May 29, 2025. The three-day bidding for the issue shall conclude on Friday, May 30.

The allocation for non-institutional investors (NIIs) was subscribed 10.42 times, while the portion reserved for retail investors saw a subscription of 4.52 times. However, the quota set aside for qualified institutional bidders (QIBs) was booked 1.85 times as of the same time.

Monarch Networth Capital is the sole book-running lead manager for the Scoda Tubes IPO, with MUFG Intime India (Link Intime) as the registrar. The basis of allotment will be finalised on Monday, June 2, 2024, and shares are expected to be listed on NSE and BSE on Wednesday, June 4, 2024.

The issue is valued at a price-to-earnings (P/E) ratio of 17.3 times on the upper price band based on FY25 earnings (annualised), which is relatively cheaper compared to its peers, said BP Equities. "Considering all the compelling factors, we recommend a 'subscribe' rating for this issue," it said.

Incorporated in 2008, Scoda Tubes is based in Ahmedabad, specialising in stainless-steel tubes and pipes under the brand 'Scoda Tubes.' The company operates a facility on the Ahmedabad-Mehsana highway in Rajpur.

The grey market premium (GMP) for Scoda Tubes has recently declined amid market volatility. The latest GMP was Rs 18 per share, indicating a potential listing gain of 13%, down from Rs 22 the previous day.

Rising export contributions, high-margin seamless product focus, and alignment with industrial and infrastructure growth trends bolster its long-term scalability. Scoda is valued at a P/E of 30.43 times and a P/B of 8.76 times on FY24 basis, reasonably in line with industry peers, said Canara Bank Securities.

"While concerns around cash flow efficiency and dependency on key distributors remain, its consistent profitability, asset-backed expansion, and sector tailwinds make it an attractive proposition. We recommend 'subscribe' for long-term investors seeking exposure to India’s precision engineering and export-oriented manufacturing ecosystem," it added.

Scoda Tubes secured Rs 66 crore from six anchor investors, distributing 47.14 lakh shares at Rs 140 each. For the nine months ending December 31, 2024, the company reported a net profit of Rs 24.91 crore and revenue of Rs 363.48 crore.

Scoda Tubes has reserved 50% of its shares for qualified institutional bidders, 15% for non-institutional investors, and 35% for retail investors. The company's market capitalisation is expected to be close to Rs 840 crore. Key dates include the IPO allotment on June 2, 2024, and the anticipated listing on June 4, 2024. Investors are encouraged to monitor allotment results and prepare for the listing on exchanges.