The Scoda Tubes IPO has emerged as a focal point for investors across India, driven by substantial demand and a rising Grey Market Premium (GMP). With the subscription window closing today, May 30, 2025, market participants are closely analyzing whether this IPO is a smart bet. Amid a flurry of interest, one pressing question persists: Is investing in the Scoda Tubes IPO a smart move for you?
This article offers a comprehensive, beginner-friendly yet professionally insightful guide to help you evaluate the Scoda Tubes IPO with clarity and confidence.
Quick Summary
- Total Issue Size: ₹220 crore (fresh issue only)
- Price Band: ₹130–₹140 per share
- Minimum Lot Size: 100 shares (₹14,000 minimum at upper price band)
- Subscription Period: May 28 to May 30, 2025
- Grey Market Premium (GMP): ₹22–₹24, suggesting a listing price of ₹162–₹164
- Expected Listing Date: June 4, 2025 (on both BSE and NSE)
- Subscription Figures: 11.72x overall; 8.55x retail; 32.05x NII; 2.01x QIB
- Utilization of Proceeds: Capacity expansion, working capital, and general corporate purposes. (Scoba Tubes IPO)
IPO Basics: What You Need to Know
What Is an IPO?
An Initial Public Offering (IPO) is the process through which a private company offers its shares to public investors for the first time. This gives the company a platform to raise funds for growth while enabling the public to become shareholders and potentially profit from the company’s performance.
Scoda Tubes IPO Overview
- Issue Size: ₹220 crore (entirely a fresh issue, meaning all capital raised goes to the company)
- Price Band: ₹130 to ₹140 per share
- Lot Size: 100 shares minimum
- Minimum Investment: ₹14,000 at the upper price band
- Registrar: Bigshare Services Pvt Ltd
- Lead Manager: Beeline Capital Advisors Pvt Ltd
To verify and explore more details, you can visit the official SEBI site and Upstox IPO page.
Market Response: What the Numbers Are Saying
As of the final day of subscription, Scoda Tubes’ IPO is significantly oversubscribed, indicating high investor confidence:
- Retail Investors: Subscribed 8.55 times
- Non-Institutional Investors (NIIs): Subscribed 32.05 times
- Qualified Institutional Buyers (QIBs): Subscribed 2.01 times
The GMP (Grey Market Premium) is hovering between ₹22 and ₹24, hinting at a possible listing price between ₹162–₹164. This translates to a 15–17% listing gain, a strong indicator of short-term potential. But it’s crucial to understand that GMP figures are unofficial and speculative, often fluctuating with market sentiment.
For real-time GMP data, visit IPO Watch.
Company Profile: Inside Scoda Tubes Limited
Scoda Tubes Ltd., founded more than 14 years ago, is engaged in manufacturing stainless steel tubes and pipes. These products cater to a wide array of industries such as:
- Oil & Gas
- Automobile Manufacturing
- Infrastructure & Construction
- Power and Energy Sectors
Why Investors Are Taking Notice
- Operational Experience: Over a decade of manufacturing know-how
- Diverse Client Base: Domestic and export markets
- Post-IPO Expansion: Plans to increase production capacity, which can lead to revenue growth
You can read more about Scoda Tubes’ business model and financials on Groww and ET Now.
Investment Decision: Should You Apply?
Advantages:
- Robust Demand: High subscription from all investor segments is a vote of confidence.
- Healthy GMP: A 15–17% premium signals strong potential for listing gains.
- Strategic Use of Funds: Expansion of production capacity can yield future growth.
Risk Factors:
- Speculative GMPs: Grey Market Premiums are not officially regulated and can shift quickly.
- Competitive Market: The steel tube sector is crowded, potentially squeezing margins.
- Raw Material Dependency: Prices of stainless steel can impact profitability.
As per The Economic Times, while Scoda Tubes has solid business fundamentals, investors should factor in industry risks.
Key Dates and Timeline
| Event | Date |
|---|---|
| IPO Opens | May 28, 2025 |
| IPO Closes | May 30, 2025 |
| Allotment Finalization | June 2, 2025 |
| Expected Listing | June 4, 2025 |
Scoda Tubes IPO as GMP Climbs: How to Apply for Scoda Tubes IPO
Step 1: Open a Demat Account
You’ll need a Demat and trading account to apply. Popular platforms include Zerodha, Angel One, Groww, and Upstox.
Step 2: Log Into Your Broker Portal
Once logged in, go to the IPO section of your broker’s platform. Search for “Scoda Tubes IPO.”
Step 3: Fill in Application Details
- Enter number of lots (minimum 1 lot = 100 shares)
- Choose “cut-off price” or specify a bid within the price band
Step 4: Make the Payment
Approval and payment is done via UPI. Make sure to authorize the request promptly to complete your application.
Step 5: Track Allotment Status
Check allotment results on BSE India starting June 2, 2025.
Overall Summary
The Scoda Tubes IPO is creating waves in the stock market, with strong investor interest and a promising GMP indicating attractive short-term returns. Its clear business goals and growth plans add to its appeal. That said, prudent investors should assess their risk appetite, financial goals, and conduct deeper research before committing for the long term.
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FAQs on Scoda Tubes IPO as GMP Climbs
1. What is the price band for the Scoda Tubes IPO?
The price range is ₹130 to ₹140 per share.
2. How do I apply for this IPO?
Use any broker offering IPO applications through UPI and a valid Demat account.
3. Is the GMP reliable?
GMP provides market sentiment but is not a guaranteed predictor of listing price.
4. What is the expected listing date?
June 4, 2025 on BSE and NSE.
5. Is this a good IPO for long-term investment?
While short-term gains look promising, long-term potential depends on business growth, scalability, and industry dynamic.