SCODA TUBES IPO: Skoda Tubes Limited, a stainless steel tubes and pipe manufacturer, is now going to enter the stock market. The company has declared a fresh issue of Rs 220 crore for its upcoming Initial Public Offering (IPO), in which a total of 1.57 crore equity shares will be issued.
This public issue will open to investors from May 28 and the bidding process will continue till May 30. The possible date of its listing on stock exchanges is being reported June 2.
The price band of the IPO has been fixed at Rs 130-140 per stock. The minimum application size 100 stock has been kept for retail investors, due to which the minimum invested amount can be from 13 thousand to 14 thousand rupees. Experts are of the opinion that in view of the possibility of oversbosyculation, investors will be better to apply for the upper realm i.e. Rs 140.
The minimum lot of 1500 shares has been fixed for small non-institutional investors (SNII), which will cost around Rs 2.10 lakh, while the lot of 7200 shares for Big NII is considered to be a minimum of Rs 10.08 lakh.
Half of this public offering is reserved for qualified institutional investors (QIBS), while 35% of retail investors and 15% have been allocated to non-institutional investors.
Skoda Tubes will use the funds from this issue in its production expansion, with the manufacturing capacity of seamless and welded steel tubes. Additionally, the company will also meet the needs of working capital and other corporate requirements.
The Skoda tubes installed in 2008 manufacture high quality stainless steel products. Its product range includes seamless tubes, welded tubes, you tubes and instrumentation tubes. The production center of the company is located in Mehsana district of Gujarat, where raw materials like ‘Mother Holo’ are also manufactured in the Hot Pieresing Mill.
Skoda tubes customers are from sectors like oil and gas, chemical, pharma, auto and railways. Its products in India are sold through the authorized stockist of Maharashtra, while in the US and Europe there are intensive distribution networks. The company has so far exported its products to more than 16 countries.
In FY 2023, the company’s income was Rs 307.79 crore, which increased to Rs 402.49 crore in FY 2024. The profit also increased from 10.34 crores to Rs 18.30 crore during the same period. In the first three quarters of FY 2025, the company has registered a revenue of Rs 363.48 crore and a net profit of Rs 24.91 crore.
