Scoda Tubes Limited IPO: 10 Key Things to Know Before Investing

Scoda Tubes Limited has built a strong specialization in manufacturing high-quality stainless steel seamless and welded tubes/pipes. With certifications that allow access to international markets and a solid customer base across oil & gas, pharma, power, transportation, and other industrial sectors, Scoda is well-positioned for growth.

Its integrated manufacturing setup, including an in-house hot piercing mill and a robust quality control system, adds to production efficiency and product reliability. A wide customer base and accreditations have also helped the company establish a strong foundation for future expansion.

Here are the key details of the IPO:

• IPO dates: May 28th - 30th, 2025
• Listing date: June 4th, 2025
• Price band: ₹130 - ₹140 per share
• Total issue size: ₹220 Cr
• Face value: ₹10 per share
• Listing Exchange: BSE, NSE
• Lot Size: 100 Shares
• Promoters: Samarth Patel, Jagrutkumar Patel, Ravi Patel, Saurabh Patel, and Vipulkumar Patel

The minimum investment required to apply for the Scoda Tubes IPO is ₹13,000, based on the lot size of 100 shares at the lower price band of ₹130 per share. However, to increase your chances of allotment, we recommend applying at the upper price band, which would require ₹14,000 (100 shares at ₹140 per share).

Founded in 2008, Scoda Tubes Limited specializes in manufacturing stainless-steel tubes and pipes used across various industries.

• Products: Seamless and welded stainless steel tubes/pipes
• Industries Served: Oil & gas, power, chemicals, pharma, railways, EPC projects, and more
• Clients: Engineering firms, industrial manufacturers, EPC contractors
   

Its offerings are marketed under the brand “Scoda Tubes Limited” and are known for quality, customization, and compliance with international standards.

The main objectives of the Scoda Tubes IPO are:

• Capital expenditure for expanding the production capacity of seamless and welded tubes/pipes
• Funding incremental working capital requirements
• General corporate purposes

The IPO allocation is likely to follow this structure (exact split not disclosed):

• QIB Shares Offered (QIBs): Not less than 50% of the Issue
• Retail Shares Offered: Not more than 35% of the Issue
• NII (HNI) Shares Offered: Not more than 15% of the Issue
   

Strengths:

• Exclusive focus on stainless steel tubes/pipes with deep product specialization
• Strong quality certifications and product approvals for global markets
• Broad customer base across industries and geographies
• Robust in-house quality testing ensuring low rejection rates
• Integrated facility enabling cost-effective production and quicker response to demand

Risks:
 

• Heavy dependency on top 10 customers
• Reliance on a limited number of stockists in India and the U.S.
• Revenue exposure to cyclical industries like EPC and engineering
• Low capacity utilization in welded pipes business poses scalability concerns
• High capital expenditure may not yield proportional returns if demand lags

The company has shown consistent growth over the years (INR Cr):

• Basis of allotment: June 2, 2025
• Refund initiation: June 3, 2025
• Shares credited to demat accounts: June 3, 2025
• Listing date: June 4, 2025

Scoda Tubes Limited offers a focused investment play on the stainless steel tubes and pipes industry. With its strong manufacturing setup, quality focus, and wide industry application, it has the ingredients for sustainable growth. However, risks like client concentration and dependence on cyclical industries should not be overlooked.
 

Investors should evaluate their risk appetite and sector outlook before investing in this IPO.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Please consult your financial advisor before investing.