Scoda Tubes listed on NSE and BSE at ₹140 price with no premium, later climbs over 3%

The stainless-steel tubes and pipes manufacturer, Scoda Tubes Limited, has made a muted debut on both NSE and BSE platforms. After closing its IPO bidding between May 28-30, 2025, the company made its stock market debut on June 4, 2025, at par with the issue price before gaining momentum in early trading. This book-building IPO raised ₹220 crore with an exceptional subscription of 57.37 times, marking a significant milestone for India's stainless steel manufacturing sector as the company aims to expand production capacity and meet growing demand from oil and gas, power, and chemical industries.

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Prostarm Info Systems IPO Listing Details

Scoda Tubes Limited launched its IPO through the book-building process and the Scoda Tubes IPO range in ₹130-140 per share, with a final issue price of ₹140. The minimum investment required was 100 shares costing ₹14,000. The IPO received an exceptional response with an overall subscription of 57.37 times - NII segment at 121.72 times, QIB at 72.97 times, and retail at 20.89 times by the final day of bidding.

Listing Price: The Scoda Tubes share price opened at ₹140 on both NSE and BSE on June 4, 2025, exactly matching the issue price with no premium, but later climbed 3.2% to ₹144.5 by 10:15 am.

First-Day Trading Performance Outlook

Scoda Tubes commenced trading on NSE and BSE on June 4, 2025, witnessing a muted stock market debut initially. The Scoda Tubes share price was at ₹140, exactly matching its IPO price with no gains for investors at listing. However, the stock gained momentum in early trading, climbing over 3% to ₹144.5 per share by 10:15 am, indicating positive investor sentiment post-listing. The company entered the market with strong fundamentals, including a manufacturing facility in Gujarat, export presence across 16 countries, and a diversified customer base spanning oil and gas, chemicals, power, and pharmaceutical sectors.

Market Sentiment and Analysis

Scoda Tubes Limited, incorporated in 2008, operates as a manufacturer of stainless-steel tubes and pipes serving engineering companies, EPC firms, and industrial companies across multiple sectors. The company's product portfolio encompasses seamless and welded tubes/pipes across five product lines, including stainless steel seamless pipes, tubes, "U" tubes, instrumentation tubes, and welded products. Operating from its manufacturing facility in Rajpur, Kadi, Mehsana, Gujarat, the company serves domestic markets through authorised stockists and exports to 16 countries, including the United States, Germany, Netherlands, Italy, Spain, and France.

Market Sentiment: Investors actively evaluate the company's manufacturing capabilities, export growth potential, and prospects in India's expanding stainless steel demand, driven by infrastructure development and industrial growth.

Performance Indicators: Scoda Tubes demonstrated strong financial performance with revenue growth of 30.76% and PAT increase of 76.98% in FY2024, showcasing robust business momentum and operational efficiency.

Growth Drivers and Challenges

Scoda Tubes presents significant growth potential with its specialised stainless-steel manufacturing capabilities, strong export presence, and expanding domestic market opportunities. The rising demand for stainless steel products in infrastructure development, industrial applications, and export markets supports its expansion plans. However, the company faces challenges including intense competition, raw material price volatility, working capital requirements, and the need for continuous capacity expansion to meet growing demand.

Growth Drivers:

• Diversified Product Portfolio: Comprehensive range of seamless and welded stainless-steel tubes and pipes across five specialised product lines
• Strong Export Presence: International operations across 16 countries with dedicated distribution networks in the United States and Europe
• Robust Manufacturing Infrastructure: State-of-the-art facility with hot piercing mill for producing mother hollow and advanced manufacturing capabilities
• Diverse Customer Base: Serving engineering companies, EPC firms, and industrial companies across oil and gas, chemicals, power, pharmaceuticals, and automotive sectors
• Strong Financial Performance: Revenue growth of 30.76% and PAT increase of 76.98% in FY2024, demonstrating operational excellence
   

Challenges:

• Raw Material Volatility: Dependence on stainless steel raw materials, subject to price fluctuations affecting margin predictability
• Intense Competition: Operating in a competitive stainless steel manufacturing market with pressure from domestic and international players
• Working Capital Requirements: Continuous funding needs for inventory management, production scaling, and business expansion
• Capacity Expansion Needs: Requirement for ongoing investment in manufacturing infrastructure to meet growing demand

Utilisation of IPO Proceeds

Scoda Tubes plans to utilise the ₹220 crore raised from the fresh issue to strengthen its production capabilities and support strategic business expansion.

• Capacity Expansion: ₹76.99 crore allocated for capital expenditure towards expanding the production capacity of seamless and welded tubes and pipes to meet growing demand.
• Working Capital: ₹110 crore designated for funding incremental working capital requirements to support business operations and inventory management.
• General Corporate Purposes: Remaining funds earmarked for general business needs and corporate initiatives to support strategic growth plans.
   

Financial Performance of Prostarm Info Systems

Scoda Tubes has shown exceptional financial growth with strong profitability metrics:

• Revenue: ₹363.48 crore for December 2024, demonstrating consistent business momentum compared to ₹402.49 crore in FY2024, reflecting market dynamics in the stainless steel sector.
• Net Profit: ₹24.91 crore in December 2024, maintaining a strong growth trajectory from ₹18.30 crore in FY2024, showcasing improved operational efficiency and business expansion.
• Net Worth: ₹143.55 crore as of December 2024, showing substantial growth from ₹63.61 crore in FY2024, reflecting business expansion and retained earnings.
   

Scoda Tubes offers an attractive investment opportunity in the specialised stainless-steel tubes and pipes manufacturing sector with its diversified product portfolio, strong export presence, and robust financial performance. While it faces challenges like raw material volatility and competitive pressures, its manufacturing expertise and expansion plans position it well for capitalising on India's growing stainless steel demand across infrastructure and industrial sectors.

The IPO presents a compelling opportunity for investors to participate in a company with strong fundamentals and significant growth potential, as evidenced by the positive post-listing momentum despite the initial muted debut on NSE and BSE platforms.