Shares of Scoda Tubes Limited experienced a flat market debut on June 4, 2025, listing at Rs 140 apiece on both the BSE and NSE. This performance offered no gains over its Initial Public Offering (IPO) price, despite a robust investor response to the issue and a positive Grey Market Premium (GMP) leading up to the listing.

The Scoda Tubes IPO, which was open for subscription from May 28 to May 30, 2025, was priced at Rs 140 per share. The company successfully raised Rs 220 crore through this public issue, which was entirely a fresh issue of 1.57 crore equity shares. The offering garnered significant investor interest, being subscribed 57.37 times overall. The retail portion saw a subscription of 20.89 times, the Qualified Institutional Buyers (QIBs) category was bid 72.97 times, and the Non-Institutional Investors (NIIs) segment led with an overwhelming 121.72 times subscription. The allotment of shares was finalized on June 2, 2025.

Market observers noted that the Grey Market Premium (GMP) for Scoda Tubes IPO stood at Rs 20 per share as of June 3, 2025. Based on this GMP and the IPO cap price of Rs 140, the estimated listing price was anticipated to be around Rs 160 per share, suggesting a potential listing gain of approximately 14.29%. However, the stock's flat debut at Rs 140 did not align with these unlisted market sentiments. While GMP can offer an insight into investor sentiment, it is not always a definitive predictor of listing performance.

Incorporated in 2008, Scoda Tubes Limited is an Indian manufacturer specializing in a diverse range of stainless steel tubes and pipes, including both seamless and welded variants. With over 14 years of experience, the company serves critical sectors such as oil and gas, chemicals, fertilizers, power, and pharmaceuticals. Scoda Tubes exports its products to 16 countries and also distributes them across India through a network of stockists and distributors.

The proceeds from the IPO are earmarked for strategic growth initiatives. These include expanding the company’s production capacity, funding its working capital requirements, and investing in the modernization of its manufacturing facility located in Gujarat. These investments aim to meet the rising demand for quality stainless steel products, both domestically and globally.

Financially, Scoda Tubes reported a net profit of Rs 24.91 crore for the nine months ended December 2024, an increase from Rs 18.30 crore in the full fiscal year FY24. The company's strong position is reportedly supported by a healthy order book, robust margins, strong return ratios, and a high promoter holding, which have contributed to investor confidence.

For its listing on the BSE, Scoda Tubes Limited's equity shares were admitted to dealings in the 'T' Group of Securities. The shares will be in the Trade-for-Trade segment for 10 trading days. The stock was part of the Special Pre-open Session (SPOS) on June 4, 2025, with trading commencing from 10:00 AM.

The broader industry context appears favorable, with forecasts indicating that the Indian stainless steel pipes and tubes market is projected to expand at a Compound Annual Growth Rate (CAGR) of 6% to 8% for the period FY24-FY29E. In terms of valuation, Scoda Tubes was valued at a Price-to-Earnings (P/E) ratio of 30.43x and a Price-to-Book (P/B) ratio of 8.76x on an FY24 basis, which analysts considered reasonably in line with industry peers.

Ahead of the listing, some analysts had anticipated listing gains. For instance, Mahesh Ojha, AVP - Research and Business Development at Hensex Securities Pvt Ltd, had expected 10%-12% listing gains and advised IPO-allotted investors to hold the stock for the medium to long term. While the immediate listing gains did not materialize as projected, the long-term perspective might still be considered by investors.

The Scoda Tubes IPO was managed by Monarch Networth Capital Ltd as the book-running lead manager, with MUFG Intime India (Link Intime) serving as the IPO registrar.