Mumbai: Scoda Tubes Ltd was listed on Wednesday in the stock market. The IPO started flat at Rs 140 on both BSE and NSE. Initially, investors didn’t see any gain, but soon the stock picked up momentum. Within a short time, it hit the 5 per cent upper circuit and reached Rs 146.95 — the highest it could go on the listing day.
Massive Investor Response to the IPO
The company launched a Rs 220 crore IPO, offering 1.57 crore new shares. Investors showed huge interest, and the IPO was subscribed 57.37 times. This means the demand was over 57 times the number of shares available — a very strong response.
Strong Buzz in Grey Market Too
Before the listing, Scoda Tubes IPO had a Grey Market Premium (GMP) of around Rs 20. That created expectations that the stock might list at Rs 160, giving investors a 14 per cent gain. Though it listed flat, it quickly rose to Rs 146.95, giving some profit.
How Will the Company Use the Funds?
Scoda Tubes plans to use the IPO money to upgrade its manufacturing plant in Gujarat and expand its production capacity. It will also meet working capital needs. This will help the company meet the growing demand for stainless steel products in India and abroad.
What Does Scoda Tubes Do?
Founded in 2008, Scoda Tubes makes stainless steel tubes and pipes — both seamless and welded. Its products are used in vital industries like oil & gas, chemicals, fertilizers, power, and pharmaceuticals. The company exports to 16 countries and sells through stockists and distributors across India.
