SCODA IPO Day 1: Questions so far have been booked 1.38 times, should you subscribe?
The initial public offering (IPO) of SCODA, which was opened on May 28, 2025, has gained a lot of interest and has now been 1.38 times the total subscription as of 1:51 pm. NSE data shows that qualified institutional buyers (QIB) have subscribed 137 times, bid for 46.53 billion shares, and retained 3.384 million shares.
Non-institutional investors (NIIS) showed stronger demand, bidding for 3.559 billion shares, a share of 1.40 times compared to 2.538 million shares. Retail Individual Investors (RII) have also actively participated, with bidding for 81.54 billion shares and quota of 59.23 billion shares, resulting in 1.38 times the subscription. The IPO will be closed on May 30, 2025.
SCODA IPO details
The goal of stainless steel pipe and pipe manufacturers is to raise Rs 2.2 crore completely through fresh stocks at a price of Rs 130 and Rs 140 per share. Scoda Tubes offers 157 million to 160 million shares and plans to list them on NSE and BSE.
Retail investors can bid for at least 100 shares, with a total price of Rs 14,000. The allocation is expected to be completed on June 2, with the stock making its debut on the exchange on June 4.
SCODA Tube: Should you subscribe? What the analyst said
SBI Securities has a positive outlook, highlighting the company’s outstanding financial performance. At the upper end of the price band, based on the annual 9MFY25 results, the SCODA tube’s price-to-earnings ratio is 21.8 times and the EV/EBITDA is 9.6 times. The broker advises investors to subscribe at critical value.
Angel One’s Vaqarjaved Khan described the IPO as “a decent opportunity for investors looking to play their infrastructure and industrial growth stories in India”, while recommending caution in competitive pressures and cash flow monitoring.
Bajaj Broking takes a neutral stance, pointing to challenges such as working capital restrictions, margin pressure and greater market risks. According to their analysts, interim performance will depend on improved cash flow management and ongoing infrastructure needs.
Scoda tube: Company background and finance
Founded in 2008, Scoda Pipes produce stainless steel seamless and welded pipes that provide oil and gas, chemicals, electricity, railways and medicines. It operates from Mehsana, Gujarat, and exports to 11 countries through popular mills and exports, accounting for more than 28% of the total revenue of 9MFY25.
The company’s revenue soared from Rs 19.4 billion in fiscal year 22 to Rs 4 billion in fiscal year 24. After-tax profit rose from Rs 1.66 crore in fiscal 22 to Rs 1.83 crore in fiscal 24. EBITDA margin increased from 5.15% in FY22 to 14.7% in FY24 with a return on equity of 28.77%.
However, cash flow efficiency remains a concern, with operating cash flows of only Rs 2.26 crore in fiscal year 24 despite increased profits. The company also faces concentrated risks due to its reliance on domestic and international sales of certain stocks. In addition, the planned expansion of welded pipes occurs when current utilization is low.
