Scoda Tubes IPO Roars on Day 3—Grey Market Buzz Hints at Big Gains!

The Scoda Tubes IPO has turned heads on Dalal Street, clocking an impressive 8.11 times subscription by Day 3, reflecting robust investor appetite for the stainless steel tubes and pipes manufacturer. The ₹220 crore IPO, open from May 28 to May 30, 2025, has been driven by overwhelming demand from non-institutional investors (NII), who subscribed 20.21 times, while the retail quota was booked 6.46 times and qualified institutional buyers (QIBs) 1.93 times.

 

Grey Market Premium (GMP) for Scoda Tubes shares is holding firm at ₹22, suggesting a potential listing price of ₹162—a 15-16% premium over the upper price band of ₹140. This optimism is fueled by the company’s stellar financials: revenue nearly doubled from ₹194 crore in FY22 to ₹400 crore in FY24, and profit after tax surged from ₹1.63 crore to ₹18.3 crore. Operating margins and return on equity have also seen a sharp uptick, signaling operational strength.

 

The IPO proceeds will be used to expand production capacity, bolster working capital, and fund general corporate purposes. Shares are set to list on NSE and BSE on June 4, 2025. While the company’s growth story and export expansion are compelling, some analysts highlight concerns over cash flow efficiency. Still, brokerage recommendations lean towards a ‘Subscribe’ for long-term investors, given the sectoral tailwinds and Scoda Tubes’ established market presence.

 

Sources: Business Standard, Economic Times, Moneycontrol