In a market that has recently seen a resurgence of investor interest in manufacturing and engineering-driven businesses, Scoda Tubes is preparing to make its public debut with an INR 220 crore Initial Public Offering (IPO). With the IPO opening on 28 May 2025 and closing on 30 May 2025, this stainless-steel tube and pipe manufacturer brings a specialized offering that aligns with India’s “Make in India” initiative and the global push for high-quality engineering materials.
With over 14 years of industry experience, a strategic manufacturing setup, international accreditations, and robust financial growth, Scoda Tubes has positioned itself as a rising player in the stainless steel product space. Let’s dig deeper into Scoda Tubes IPO review:
Table of Contents
Business Model: Backward-Integrated Metallurgical Craftsmanship
Core Proposition
Scoda Tubes Limited stands out in the crowded Indian stainless steel space by being a vertically integrated manufacturer of high-grade seamless and welded tubes. Their most significant strategic differentiator is their proprietary hot piercing mill that allows for the in-house production of mother hollow tubes with a rated capacity of 20,000 MTPA. This in-house capacity enables Scoda to bypass global supply chain volatility and optimize production lead times while safeguarding margins against raw material price fluctuations. This level of backward integration is rare among mid-cap stainless steel players, positioning Scoda as a high-efficiency operator in a margin-sensitive industry.
The company also leverages a lean operational structure, digitized inventory control systems, and long-standing procurement relationships for raw stainless steel billets. This ensures streamlined procurement cycles and consistent production quality across its facilities.
Product Portfolio
Scoda’s product suite spans across:
- Seamless Pipes & Tubes
- U-Tubes (Seamless & Welded)
- Hydraulic & Instrumentation Tubes
- Welded Stainless Steel Tubes
- Mother Hollows
These products are essential in high-specification applications across industries such as Oil & Gas, Fertilizers, Power Generation, Process Engineering, Railways, and Automotive OEMs. Additionally, the company has also begun developing niche precision applications for export-oriented EPC and chemical processing clients, further enhancing its product stickiness.
Global Ambitions: Scoda’s Export Arsenal
From FY22 to FY24, Scoda steadily increased its global footprint, exporting to 16 countries with a particularly strong presence in:
- United States
- Germany
- Italy
- Netherlands
- Spain
- UAE
- South Korea
Exports have consistently contributed over 30% of the company’s top line. This has been made possible through a growing network of local distributors and stockists across North America and Europe, alongside investments in market-specific certifications (e.g., PED, ASTM, ASME). Participation in key international trade shows like Tube Dusseldorf and Stainless Steel World Maastricht has further elevated Scoda’s brand visibility among global procurement heads and EPC contractors.
To support its export strategy, Scoda has established a dedicated export division with a technical pre-sales team fluent in region-specific compliance documentation and delivery norms.
Scoda Tubes IPO Review: IPO Details
The Scoda Tubes IPO comprises a fresh issue of equity shares aggregating to INR 220 crore, with no Offer for Sale component—a strong signal of promoter confidence and a focus on growth rather than profit booking.
- IPO Opening: 28 May 2025
- IPO Closing: 30 May 2025
- Price Band: INR 130–140 per share
- Lot Size: 100 shares (INR 14,000 at upper band)
- Retail Quota: 35%
- Listing on: BSE and NSE
- Allotment Date: 2 June 2025
- Listing Date: 4 June 2025
Scoda Tubes IPO Review: Use of IPO Proceeds
Scoda Tubes intends to use the funds raised from the IPO for the following:
- INR 104.98 crore for capital expenditure toward expanding production capacity, especially for seamless and welded stainless steel products.
- INR 110 crore to bolster working capital for smoother operational cycles.
- The balance towards general corporate purposes to strengthen the company’s balance sheet.
This is a clearly growth-oriented use of capital and aligns with Scoda’s trajectory of expanding its manufacturing footprint and increasing market penetration.
Manufacturing Prowess: Engineered Scale with Controlled Precision
Capacity Profile (as of Dec 2024):
- Seamless Tubes: 10,068 MTPA (79.01% utilization)
- Welded Tubes: 1,020 MTPA (8.46% utilization)
- Mother Hollow: 20,000 MTPA
The seamless division remains the crown jewel, operating near optimal utilization. However, the underperformance in welded tubes hints at untapped potential, which the company intends to unlock with the proposed capacity expansion.
Expansion Strategy
IPO proceeds will be channeled into:
- Doubling seamless capacity to 20,068 MTPA
- Scaling welded capacity more than 12-fold to 13,150 MTPA
- Establishing an advanced quality inspection and heat treatment line for welded products
- Automation of warehouse and dispatch operations
These investments are aimed at meeting export demand for larger-diameter welded tubes and achieving better economies of scale across product lines.
Financial Performance: A Picture of Consistency and Growth
Scoda Tubes has shown consistent financial growth over the past three years, supported by operational efficiencies, export growth, and product specialization.
| FY 2022 | FY 2023 | FY 2024 | 9M FY 2025 | |
| Revenue | 194.03 | 305.13 | 399.86 | 361.17 |
| Expenses | 192.74 | 293.41 | 376.55 | 330.12 |
| Net income | 1.64 | 10.34 | 18.30 | 24.91 |
| Margin (%) | 0.85 | 3.39 | 4.58 | 6.90 |
| RONW (%) | 4.68 | 22.81 | 28.77 | 17.36 |
| ROCE (%) | 5.84 | 12.64 | 15.92 | 13.67 |
| EBITDA (%) | 5.15 | 11.40 | 14.70 | 16.79 |
| Debt/Equity | 3.14 | 3.06 | 3.19 | 1.41 |
The company’s revenue has grown at a CAGR of 27.26%, while PAT increased at a staggering CAGR of 123.64% over the past three years. EBITDA margins and return ratios have consistently improved, indicating operational efficiency and healthy demand.
The Debt-to-Equity ratio has improved from 3.14 in FY 2022 to 1.41 as of 31 December 2024, demonstrating stronger balance sheet discipline.
Strategic Strengths: Beyond the Balance Sheet
- Backward Integration – Ownership of the hot piercing mill gives the company control over one of the most critical and capital-intensive production processes.
- Export Branding – Scoda’s investment in global trade presence is yielding high-recall and direct sourcing contracts.
- Product Niche – Products like U-tubes and precision tubes address high-compliance industrial applications with better pricing power.
- Certifications and Compliance – PED certification, IBR approval, and ISO credentials allow seamless access to regulated markets.
- Customer Stickiness – Long-standing relationships with top EPC players ensure high repeat order visibility.
Scoda Tubes IPO Review: Risks and Red Flags
- Underutilized Welded Line – Current utilization at 3.82% suggests significant execution risk in scaling this vertical.
- Single-Site Dependency – All production is based at one facility in Gujarat, which heightens operational risk.
- Price Competition – Chinese and Vietnamese imports, though currently facing duties, can still undercut margins in commoditized segments.
- Capex Execution – The large capacity expansion must be managed without disrupting existing operational cadence.
- Regulatory Dependencies – Export growth is sensitive to trade policy shifts in the EU and US.
Scoda Tubes IPO Review: Peer Comparison
| Company | PE ratio | EPS | RONW (%) | NAV | Revenue (Cr.) |
| Scoda Tubes | 33.81 | 4.14 | 28.77 | 15.99 | 399.86 |
| Ratnamani Metals | 40.82 | 89.18 | 19.90 | 448.07 | 5,059.09 |
| Venus Pipes | 51.20 | 42.36 | 21.17 | 200.05 | 802.20 |
While Scoda’s topline is smaller, its Return on Net Worth (RONW) of 28.77% is the highest among peers, suggesting efficient capital use. A P/E of 33.81 at the IPO price band is reasonable, given the growth prospects and specialized product focus.
Conclusion
Scoda Tubes presents a compelling case of capital-efficient scaling, rooted in manufacturing precision and export-first growth logic. The IPO aims to unlock underused welded tube capacity and solidify export leadership. Backward integration, strong financials, and customer loyalty build a strong investment narrative.
However, the real test lies in execution — from expansion timelines to quality consistency at scale. If Scoda manages to maintain its operational rigor post-expansion, it could become one of the most profitable mid-cap plays in India’s specialty steel segment.