Scoda Tubes shares disappoints at market debut; stock lists flat

Shares of Scoda Tubes made a muted Dalal Street debut on Wednesday, June 04 as the manufacturer of stainless-steel tubes and pipes was listed flat, that is, on the issue price of Rs 140 on both BSE and NSE. The muted listing amid positive market bias has disappointed investors.

The listing has been below expectations as the grey market premium (GMP) for Scoda Tubes stood at Rs 20 per share, suggesting potential listing gains of approximately 14-15% for investors. The grey market premium remained stable, reflecting sustained investor interest in the aftermarket.

Scoda Tubes, a manufacturer of stainless-steel tubes and pipes, concluded its initial public offering (IPO) with significant interest from investors. Incorporated in 2008 and based in Ahmedabad, the company specialises in seamless and welded tubes marketed under the brand name ‘Scoda Tubes’.

The manufacturing facility is strategically located on the Ahmedabad-Mehsana highway in Rajpur. The IPO, which was open for bidding between May 28 and May 30, was managed by Monarch Networth Capital, with MUFG Intime India serving as the registrar.

The IPO of Scoda Tubes attracted substantial interest, being subscribed a remarkable 53.78 times. The issue saw 12.75 lakh applications, amounting to a total bid of Rs 8,836 crore. It offered shares within a price band of Rs 130-140 per share, raising Rs 220 crore through the fresh sale of 1,57,14,286 equity shares.

Qualified institutional buyers (QIBs) demonstrated strong demand, with their portion subscribed 69.51 times. Non-institutional investors (NIIs) subscribed to the IPO 113.03 times, while the retail investors’ quota was taken up 19.40 times. This robust subscription indicates high investor confidence and demand across different investor categories.