Scoda Tubes
Book Building issueMainboardBSE₹220 Cr issue
0.00%
Listing gain over issue price
Issue size
₹220 Cr
1 lot at cut-off
₹14,000
Lot size
100shares
Open
28 May 2025
Close
30 May 2025
Allotment
02 Jun 2025
Listing
04 Jun 2025
Listing performance
Issue price
₹140
Listed at
₹140
Listing-day close
₹147
Latest price
₹107.47
Close on 23 Oct 2026
Listing gain
0.00%
Return since issue
-23.24%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 28 May 2025 – 30 May 2025
- Listing date
- 04 Jun 2025
- Face value
- ₹1 per share
- Issue price
- ₹140 per share
- Lot size
- 100 shares
- Issue type
- Book Building issue
- Listing at
- BSE
- Total issue size
- ₹220 Cr
- Market cap at offer price
- ₹839 Cr
- Promoter holding
- 90.04% → 66.43% pre-issue → post-issue
- ISIN
- INE090501011
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- Monarch Networth Capital Ltd.
- Registered office
- Survey No.1566/1, Village Rajpur, Kadi, Mehsana, Gujarat
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 47,14,200 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 100 shares per lot, in multiples, at ₹140
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 100 | ₹14,000 |
| Retail (max) | 14 | 1,400 | ₹1,96,000 |
| S-HNI (min) | 15 | 1,500 | ₹2,10,000 |
| S-HNI (max) | 71 | 7,100 | ₹9,94,000 |
| B-HNI (min) | 72 | 7,200 | ₹10,08,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
47,14,200
Anchor portion
₹66 Cr
at ₹140 per share
Valuation and performance
Valuation at offer price
₹140 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 4.14 | 5.54 |
| P/E (×) | 33.82 | 25.27 |
| Price to book (×) | 8.76 | — |
| Market cap | — | ₹839 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 28.77%
- ROCE
- 15.92%
- PAT margin
- 4.58%
- EBITDA margin
- 14.70%
- NAV per share
- ₹15.99
- Price to book
- 8.76
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Scoda Tubes
Scoda Tubes Limited is a stainless steel tubes and pipes manufacturer incorporated in November 2008 and based in Mehsana, Gujarat, India. The company has over 14 years of manufacturing experience and operates a single manufacturing facility with a hot piercing mill for backward integration. It produces seamless tubes/pipes and welded tubes/pipes under five product lines: stainless steel seamless pipes, seamless tubes, seamless U-tubes, instrumentation tubes, and welded tubes and U-tubes. The company sells through a network of domestic and international stockists under the 'Scoda Tubes Limited' brand. Revenue for the nine months ended December 31, 2024 was ₹3,611.71 million, with seamless products accounting for 85% of revenue. The company also generates revenue from job work services like annealing, straightening, pickling, and marking.
Company Analysis
from RHPScoda Tubes Limited manufactures stainless steel seamless and welded tubes and pipes for diverse industrial sectors including oil & gas, chemicals, power, pharmaceuticals, automotive, and railways.
Scoda Tubes Limited is a stainless steel tubes and pipes manufacturer incorporated in November 2008 and based in Mehsana, Gujarat, India. The company has over 14 years of manufacturing experience and operates a single manufacturing facility with a hot piercing mill for backward integration. It produces seamless tubes/pipes and welded tubes/pipes under five product lines: stainless steel seamless pipes, seamless tubes, seamless U-tubes, instrumentation tubes, and welded tubes and U-tubes. The company sells through a network of domestic and international stockists under the 'Scoda Tubes Limited' brand. Revenue for the nine months ended December 31, 2024 was ₹3,611.71 million, with seamless products accounting for 85% of revenue. The company also generates revenue from job work services like annealing, straightening, pickling, and marking.
stainless steel tubes and pipes manufacturingoil and gaschemicalsfertiliserspowerpharmaceuticalsautomotiverailways and transportation
Objects of the Issue
- Capital expenditure towards expanding production capacity of seamless and welded tubes and pipes ₹769.90 million p.27
- Funding the part incremental working capital requirements of our Company ₹1,100 million p.27
- General corporate purposes p.27
- Capital expenditure towards expanding production capacity of seamless tubes and pipes ₹554.41 million (estimated) p.56
- Capital expenditure towards setting up additional capacity for manufacturing of welded tubes and pipes Up to ₹445.44 million (estimated) p.67
- General corporate purposes p.56
- Capital expenditure towards expanding production capacity of seamless and welded tubes and pipes ₹769.90 million p.120
- Funding the part incremental working capital requirements of our Company ₹1,100.00 million p.120
- General corporate purposes [●] p.120
- This section describes an upcoming IPO; specific objects of issue are not provided in this part of the document
- —
Issue Structure
- Total Issue
- Up to ₹2,200.00 million (after reduction by ₹550.00 million pursuant to Pre-IPO Placement of 4,400,000 Equity Shares at ₹125 per share on October 21, 2024)
- Fresh Issue
- Up to [●] Equity Shares of face value of ₹10 each aggregating up to ₹2,200.00 million
- Offer for Sale
- Not Applicable
- Price Band
- [●] (to be decided by company in consultation with BRLM)
- Lot Size
- [●] (minimum bid lot size to be decided by company in consultation with BRLM)
- Face Value
- ₹10 each
Business Model
The company manufactures and sells stainless steel tubes and pipes through a network of stockists domestically and internationally. It operates a hot piercing mill for in-house production of mother hollow (raw material for seamless products), achieving backward integration. Revenue streams include: (1) sale of seamless tubes and pipes (85% of nine months ended December 31, 2024 revenue), (2) sale of welded tubes and pipes (0.62%), (3) sale of services including job work (1.06%), and (4) sale of mother hollow and scrap (13.32%). The company sells on various payment terms including CIF, FOB, open credit, letter of credit, consignee basis, and delivery duty paid.
Business Segments
Manufacturing of stainless steel seamless tubes, pipes, U-tubes, and instrumentation tubes without seams (end joints), manufactured using round bars with a hot piercing mill for in-house mother hollow production
Manufacturing of stainless steel welded tubes and U-tubes manufactured by welding flat steel strips into round/circular shape
Job work services including annealing, straightening, pickling and marking provided to customers; sale of mother hollow and scrap
Manufacturing of seamless stainless-steel tubes and pipes with installed capacity and production capability
Manufacturing of welded stainless-steel tubes and pipes; currently a smaller part of the business
Production of mother hollow, the principal raw material for seamless stainless-steel products, through backward-integrated in-house piercing mill
Manufacturing of stainless steel seamless tubes and pipes with backward integration through mother hollow facility. Products include high precision tubes, hydraulic/instrumentation tubing, and standard seamless pipes.
Manufacturing of stainless steel welded tubes and pipes with proposed capacity expansion to serve broader product range and larger projects.
Production of stainless steel mother hollow pipes for captive consumption in seamless tube manufacturing and direct sales.
Manufactures seamless pipes, seamless tubes, seamless 'U' tubes, and hydraulic/instrumentation tubes used for high pressure, temperature, and corrosive environment applications in oil and gas, chemicals, power, pharmaceuticals, automotive, and other industries
Manufactures welded tubes and 'U' tubes used for low pressure applications in chemical, gas, power generation, pharmaceutical and other industries
Manufactures mother hollow (principal raw material for seamless products) and sells scrap. Any quantities of mother hollow in excess of captive consumption are sold in the open market.
Manufacture and supply of stainless steel pipes and tubes to customers in fertilizer, petroleum, power, mining, engineering, chemical, pharmaceutical, and railway sectors
Manufacturing of seamless stainless steel tubes and pipes including seamless pipes, seamless tubes, seamless U tubes, and instrumentation tubes
Manufacturing of welded stainless steel tubes and U tubes
Operation of a piercing mill for the production of mother hollow, which is the principal raw material for stainless steel seamless products; excess quantities are sold in the open market
SWOT Analysis
Strengths
- • Over 14 years of manufacturing experience in stainless steel tubes and pipes(p.26)
- • Backward integration through captive hot piercing mill for mother hollow production(p.26)
- • Diverse customer base across multiple end-use sectors(p.26)
- • Established international presence with exports to 11 countries(p.47)
- • Backward integration through in-house piercing mill for mother hollow production(p.61)
- • International quality certifications and compliance with multiple standards(p.62)
- • Established export presence across 11 countries(p.55)
- • Backward integration with mother hollow manufacturing capacity(p.122)
- • Capacity expansion for seamless and welded products(p.122)
- • Strategic location and fully integrated production(p.147)
- • International accreditations and product approvals(p.147)
- • Customer diversification and international presence(p.147)
- • Experienced and qualified team(p.147)
- • Consistent financial performance(p.147)
- • Strong EBITDA margins and profitability improvement(p.150)
- • Specialised production in stainless steel tubes and pipes with deep expertise in a single metal category(p.192)
- • Strategic manufacturing location with proximity to major export ports and reduced logistics costs(p.192)
- • Fully integrated backward integration with in-house hot piercing mill for mother hollow production, reducing raw material costs and supply risk(p.193)
- • Diversified customer base and geographical presence across domestic and international markets reducing concentration risk(p.193)
- • Experienced promoters with 8+ years in the pipe industry with strong supplier and customer relationships(p.193)
- • Extensive quality control systems and low rejection rates ensuring consistent product quality(p.193)
- • Multiple international certifications and accreditations enabling access to global markets(p.193)
- • Strong consistent financial performance with revenue CAGR of 27% and PAT CAGR of 124% over three years(p.193)
- • Multi-sector customer base with approvals from PSUs across defence, energy, fertilizer, petroleum, power, railways, and atomic sectors(p.232)
- • Established ISO certifications across quality, environment, and occupational health & safety standards(p.232)
- • Significant production capacity expansion and demonstrated growth trajectory(p.232)
- • Established brand recognition through trademark registration(p.232)
- • Backward integration through mother hollow production(p.311)
- • Strong financial performance improvement(p.322)
- • Revenue growth trajectory(p.319)
- • Diversified customer base across sectors(p.311)
- • 14 years of manufacturing experience(p.311)
Weaknesses
- • Heavy dependence on top 10 customers for 57.78% of revenue(p.37)
- • Reliance on network of stockists including exclusive arrangements in key markets(p.38)
- • Very low capacity utilization for welded tubes and pipes business at 8.46%(p.41)
- • High dependency on raw material costs representing 79.54% of total expenses(p.42)
- • Extended working capital cycle of 153 days creating liquidity pressure(p.45)
- • History of negative cash flows from operations in Fiscal 2022(p.46)
- • Low profit margins with PAT margin of only 6.90% for nine months ended December 31, 2024(p.51)
- • Single manufacturing facility creating operational concentration risk(p.48)
- • Unsecured loans from promoters and promoter group subject to recall at any time(p.52)
- • History of delays in payment of statutory dues including GST and TDS(p.49)
- • High debt-to-equity ratio limiting financial flexibility(p.67)
- • Significant portion of manufacturing facility operated on leasehold basis(p.55)
- • Substantial reliance on contract labour with limited control over costs(p.62)
- • Deteriorating capacity utilization particularly for welded tubes and mother hollow(p.61)
- • Promoters are not original founders with limited track record(p.66)
- • Significant recent increase in employee attrition(p.57)
- • Low utilization of welded pipe capacity(p.122)
- • Limited welded pipe product range restricts market opportunities(p.122)
- • Small welded capacity prevents participation in larger projects(p.122)
- • High working capital requirements due to long production cycle(p.136)
- • Dependence on working capital financing(p.135)
- • Increasing debtor days and working capital requirements affecting cash conversion cycle(p.195)
- • Declining current ratio indicating reduced ability to meet short-term obligations(p.195)
- • Heavy reliance on stockist network including one exclusive distributor in Maharashtra for domestic sales and one in US for exports(p.198)
- • Significant portion of raw materials imported, creating foreign exchange and supply chain vulnerability(p.198)
- • High proportion of borrowings relative to equity capital structure(p.264)
- • Significant concentration of shareholding among promoter group with limited public float post-IPO(p.252)
- • Related party lending representing material portion of borrowings(p.290)
- • Prior litigation and management control disputes requiring settlement(p.254)
- • No dividend distribution history despite accumulated earnings(p.258)
- • High debt-to-equity ratio(p.328)
- • Significant dependence on top customers(p.312)
- • High concentration in raw material supplier base(p.312)
- • Dependence on largest supplier(p.312)
- • Growing finance costs strain profitability(p.320)
Opportunities
- • Strong domestic demand growth projected at 6-8% CAGR through Fiscal 2029(p.26)
- • Planned capacity expansion for seamless and welded tubes and pipes(p.27)
- • Growing end-use industries including building and construction, automobiles, and oil and gas(p.26)
- • Expansion of export markets with presence in 11 countries(p.47)
- • Opportunity to scale welded tubes and pipes business from low base(p.24)
- • Expansion of production capacity for seamless and welded tubes(p.56)
- • Growth of welded tubes business segment(p.58)
- • Expansion into new geographic markets(p.58)
- • Government support through anti-dumping and anti-subsidy duties(p.76)
- • Expansion of seamless and welded tube capacity(p.122)
- • Increased product range to serve broader customer base(p.122)
- • Benefit from anti-dumping duties on Chinese imports(p.122)
- • Benefit from anti-subsidy duties on welded pipes(p.122)
- • Government infrastructure spending and capacity expansion(p.172)
- • Rising per capita steel consumption in India(p.173)
- • Government's Make in India and Aatma Nirbhar Bharat initiatives supporting domestic stainless steel pipe manufacturing(p.194)
- • Anti-dumping duties on Chinese and anti-subsidy duties on Chinese and Vietnamese imports protecting domestic producers(p.195)
- • Significant growth in water supply, sanitation and irrigation investments through government schemes like Jal Jeevan Mission(p.174)
- • Strong domestic stainless steel demand growth expected at 7-9% CAGR through FY2029 from multiple end-use sectors(p.178)
- • Expansion of oil and gas infrastructure and LNG trade driving pipeline network growth globally(p.195)
- • Capacity expansion opportunity with acquisition of additional land for seamless and welded product manufacturing(p.205)
- • Government support for infrastructure, housing, railways and gas pipelines driving steel tube demand(p.195)
- • Expansion into new customer segments and geographic markets through established PSU relationships(p.232)
- • Scaling production to meet growing demand from domestic and export sectors(p.232)
- • Leveraging PSU vendor status for sustained orders and business growth(p.232)
- • Government Make in India and Aatma Nirbhar Bharat initiatives(p.312)
- • Infrastructure investments by government(p.312)
- • Production-linked incentive schemes(p.312)
- • Anti-dumping duties protection(p.312)
- • Anti-subsidy duty on welded pipes(p.312)
- • Capacity expansion potential(p.313)
Threats
- • Global demand for stainless steel tubes and pipes growing slowly at only 3% CAGR(p.26)
- • Vulnerability to changes in government policies affecting exports(p.47)
- • Exposure to geo-political risks and economic instability in export markets(p.48)
- • Risk of anti-dumping and countervailing trade measures on stainless steel imports(p.48)
- • Volatility in raw material prices and foreign currency fluctuations(p.53)
- • No long-term supply contracts with major customers creating vulnerability to order cancellations(p.37)
- • Intense price competition in stainless steel pipes market(p.41)
- • Reduction in activity and expenditure levels by major industrial customers could adversely affect demand(p.39)
- • Dependence on continuous supply of critical raw materials with limited long-term contracts(p.43)
- • Volatility in raw material prices particularly stainless-steel round bars(p.57)
- • Reliance on third-party utilities with risk of supply disruption(p.55)
- • Foreign exchange fluctuation risks from export-oriented business(p.55)
- • Intense competition from domestic and international players(p.59)
- • Competition from cheaper imported products in export markets(p.59)
- • Dependence on third-party transportation with no long-term contracts(p.64)
- • Cyclical demand sensitivity tied to oil and gas industry cycles(p.57)
- • Geopolitical conflicts and trade restrictions impacting supply chains(p.76)
- • Competitiveness from established industry peers(p.149)
- • Prolonged working capital cycle and cash conversion challenges(p.137)
- • Capacity utilization risk in welded segment(p.150)
- • Dependence on raw material pricing and availability(p.136)
- • Industry cyclicality and economic sensitivity(p.172)
- • Volatile raw material prices (nickel and chromium) impacting production costs and manufacturer viability(p.180)
- • Environmental regulations and stringent compliance requirements increasing production costs(p.180)
- • Global economic downturn reducing demand from key end-use sectors like oil and gas, construction and automobile(p.180)
- • Competition from cheaper imports and import substitution by alternative materials(p.196)
- • Geopolitical conflicts and trade barriers disrupting supply chain and market access(p.196)
- • Volatility in oil prices affecting government spending and infrastructure investment in oil-dependent nations(p.196)
- • Risk of material substitution from alternative materials or technological advancements(p.184)
- • High sensitivity to interest rate and finance cost volatility given significant debt levels(p.265)
- • Dependence on a concentrated customer base in government and PSU sectors subject to budget cycles and procurement policies(p.232)
- • Exposure to raw material price fluctuations and steel industry cyclicality(p.265)
- • No significant financial or strategic partners to mitigate business risks(p.233)
- • Volatility in raw material commodity prices(p.311)
- • Supply disruption risks(p.313)
- • Intense industry competition(p.314)
- • Cyclical demand from end-use sectors(p.314)
- • Reliance on skilled labour availability(p.314)
- • Foreign currency exposure(p.303)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Samarth Patel | Promoter | 14.03% | — |
| Jagrutkumar Patel | Promoter | 9.00% | — |
| Ravi Patel | Promoter | 9.00% | — |
| Saurabh Patel | Promoter | 14.03% | — |
| Vipulkumar Patel | Promoter | 3.24% | — |
| Samarth Patel | Promoter | 49.30% (as part of collective Promoter holding) | [●]% |
| Jagrutkumar Patel | Promoter | 49.30% (as part of collective Promoter holding) | [●]% |
| Ravi Patel | Promoter | 49.30% (as part of collective Promoter holding) | [●]% |
| Saurabh Patel | Promoter | 49.30% (as part of collective Promoter holding) | [●]% |
| Vipulkumar Patel | Promoter | 49.30% (as part of collective Promoter holding) | [●]% |
| Samarth Patel | Promoter | 14.03% | — |
| Saurabh Patel | Promoter | 14.03% | — |
| Jagrutkumar Patel | Promoter | 9.00% | — |
| Ravi Patel | Promoter | 9.00% | — |
| Vipulkumar Patel | Promoter | 3.24% | — |
| Nisarg Patel | Promoter Group | 7.20% | — |
| Ratanben Patel | Promoter Group | 5.40% | — |
| Rameshbhai Patel | Promoter Group | 4.50% | — |
| Ranchhodbhai K Patel HUF | Promoter Group | 4.50% | — |
| Samarth Patel | Promoter | — | — |
| Jagrutkumar Patel | Promoter | — | — |
| Ravi Patel | Promoter | — | — |
| Saurabh Patel | Promoter | — | — |
| Vipulkumar Patel | Promoter | — | — |
| Jagrutkumar Patel | Promoter | 9.00% | — |
| Ravi Patel | Promoter | 9.00% | — |
| Samarth Patel | Promoter | 14.03% | — |
| Saurabh Patel | Promoter | 14.03% | — |
| Vipulkumar Patel | Promoter | 3.24% | — |
| Samarth B. Patel | Promoter | — | — |
| Jagrut R. Patel | Promoter | — | — |
| Ravi R. Patel | Promoter | — | — |
| Saurabh A. Patel | Promoter | — | — |
Leadership
Samarth Patel · Chairman
Jagrutkumar Patel · Managing Director
Ravi Patel · CFO
Nishita Sanghvi · Company Secretary and Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Scoda Tubes IPO FAQs
What is the lot size of Scoda Tubes IPO?
The minimum lot size of Scoda Tubes IPO is 100 shares. One lot costs ₹14,000 at the cut-off price.
When does Scoda Tubes IPO open and close?
Scoda Tubes IPO opened for subscription on 28 May 2025 and closed on 30 May 2025.
What is the listing date of Scoda Tubes IPO?
Scoda Tubes IPO listed on 04 Jun 2025.