Scoda Tubes IPO Listing: Robust Debut Signals Investor Confidence

Scoda Tubes IPO Listing made headlines on June 4, 2025, as the Gujarat-based stainless steel tube and pipe manufacturer debuted at ₹140 on both NSE and BSE. The stock quickly hit the 5% upper circuit at ₹147, indicating strong investor interest and confidence.

This blog delivers a detailed analysis of the Scoda Tubes IPO Listing performance, subscription fundamentals, market sentiment, and key risks investors should watch going forward.

📈 Listing Day Performance Overview

✅ Listing Price and Market Reaction

Scoda Tubes listed at the upper band of ₹140, and within minutes, it surged to ₹147, hitting the 5% upper circuit limit. By the end of the trading session, the stock closed at ₹144.90, reflecting a 3.5% gain from its listing price.

Key Statistics (June 4, 2025):

• Opening Price: ₹140

• Closing Price: ₹144.90

• High: ₹147

• Volume Traded: 36.32 lakh shares

• Value Traded: ₹51.69 crore

• VWAP: ₹142.34

The performance indicates strong institutional and retail participation, especially in light of broader market volatility during the week.

🏢 Market Cap and Sector Standing

With a market capitalization of ₹868.68 crore on debut, Scoda Tubes enters the mid-cap segment. The company’s specialized manufacturing focus—producing 85% high-margin seamless tubes—gives it a competitive edge in sectors like oil & gas, pharma, and power.

Also Read :- https://ipofront.in/n-r-vandana-tex-industries-ipo-listing-day-performance-analysis/

🔍 IPO Subscription Analysis

💹 Oversubscription Breakdown

Scoda Tubes’ IPO attracted significant attention, with a final subscription rate of 57.37x, indicating heavy demand across all investor classes:

• Qualified Institutional Buyers (QIBs): 69.51x

• Non-Institutional Investors (NIIs): 113.03x

• Retail Investors: 19.4x

Strong anchor participation from funds such as Malabar India Fund and Carnelian Bharat Amritkaal Fund boosted institutional confidence.

📊 Grey Market Premium (GMP) Insights

The GMP hovered around ₹24 before listing, indicating expectations of 17% listing gains. However, actual listing was flat, showing that GMP trends are speculative and should be paired with solid financial analysis.

Also Read :- https://ipofront.in/astonea-labs-ipo-listing-performance-analysis/

💰 Financial Performance Snapshot

Scoda Tubes’ financials are a major reason behind the IPO’s success. Here’s what the numbers show:

📈 Revenue & Profit Growth

• FY23 Revenue: ₹305.1 crore

• FY24 Revenue: ₹399.9 crore (31% YoY growth)

• FY24 Net Profit: ₹18.3 crore

• 9M FY25 Net Profit (Dec 2024): ₹24.9 crore

The company’s focus on seamless tube production contributed to higher EBITDA margins (28%) compared to welded tubes (15%).

📊 Key Ratios

• EPS (FY24): ₹4.60

• RoE (FY24): 28.8%

• Net Debt/EBITDA (Dec 2024): 2.1x

• Debt-to-Equity (FY24): 3.19 (down from 4.47 in FY23)

These numbers indicate a company on a stable growth path, with improving leverage and operational efficiencies.

Also Read :-https://ipofront.in/borana-weaves-ipo-listing-performance/

⚠️ Risks and Challenges

While Scoda Tubes shows promise, investors must weigh potential risks:

🌀 Working Capital Strain

The company reported 162 working capital days in FY24, which could strain liquidity amid capex-heavy expansion plans.

📉 Raw Material Volatility

Around 60% of input costs are linked to nickel, making the firm vulnerable to commodity price swings. Though contracts with Indian Oil and GAIL offer revenue stability, they also limit pricing flexibility.

🏭 Industry Competition

With over 500 players in India’s stainless steel pipe market, maintaining margins while scaling capacity (from 20,000 MTPA to 32,130 MTPA by FY26) remains a challenge.

Also Read :-https://ipofront.in/blue-water-logistics-ipo-listing-performance/

🛠️ Utilization of IPO Proceeds

The ₹220 crore raised in the IPO will be strategically used as follows:

🧱 Capacity Expansion

• ₹76.99 crore allocated to upgrade manufacturing lines.

• New cold-drawing mill installation for precision tubing.

• Upgrades for compliance with API and ASTM standards.

This will help tap into demand from LNG and pharma sectors, both projected to grow at 12% CAGR till 2030.

💼 Working Capital & Debt

• ₹110 crore will support working capital needs.

• Helps reduce dependence on short-term debt (₹202 crore as of Dec 2024).

• Remaining funds to be used for R&D and general corporate purposes.

Also Read :-https://ipofront.in/blue-water-logistics-ipo-listing-performance/

🧩 Conclusion: A Promising Start, But Watch Closely

Scoda Tubes’ strong debut indicates positive investor sentiment built on a foundation of improving financials and smart expansion strategies. But, like any newly listed stock, execution risk remains key.

What to Watch Going Forward:

1. Quarterly Results: Continued profitability and margin expansion.

2. Capex Execution: Timely project completions and ROI.

3. Order Book Growth: Currently at ₹480 crore.

4. Nickel Price Trends: Cost control through hedging or operational agility.

5. Working Capital Optimization: Faster inventory turnover and receivables recovery.

While the IPO valuation of 30.4x FY24 earnings is fair for the sector, long-term success will depend on the company’s ability to scale without diluting margins or overstretching its balance sheet.

Frequently Asked Questions (FAQ)

1. What was the listing price of Scoda Tubes IPO?
Scoda Tubes listed at ₹140 per share, which was the upper end of its IPO price band of ₹130–₹140.

2. How did Scoda Tubes perform on the listing day?
The stock hit the upper circuit of ₹147 within minutes and closed at ₹144.90, up 3.5% from its listing price.

3. Was the Scoda Tubes IPO oversubscribed?
Yes, the IPO was heavily oversubscribed at 57.37x, with strong interest from institutional, high-net-worth, and retail investors.

4. What are the key growth plans of Scoda Tubes post-IPO?
The company plans to expand capacity from 20,000 MTPA to 32,130 MTPA, invest in precision tube equipment, and reduce short-term debt.

5. Is Scoda Tubes a good long-term investment?
It shows strong fundamentals, but investors should track capex execution, working capital efficiency, and raw material price risks for long-term assessment.