Gujarat-based Scoda Tubes Ltd. has filed preliminary papers to raise Rs 275 crore through an initial public offering. The IPO consists only of fresh issues and no offer for sale, according to the draft red herring prospectus submitted to the Securities and Exchange Board of India.
The proceeds from the fresh issue to the extent of Rs 105 crore will be used for capital expenditure towards expanding production capacity of seamless tubes and pipes by 10,000 million tonne per annum and welded tubes and pipes by 12,130 MTPA.
Another Rs 110 crore will be allocated for partly funding working capital requirements in fiscal 2026 and 2027. As of March 31 this year, the outstanding working capital facility in the form of short-term borrowings was Rs 108.5 crore.
The rest of the proceeds from the IPO will be deployed for general corporate purposes.
The Scoda Tubes IPO will be managed by Monarch Networth Capital Ltd. and Link Intime India Pvt.
About Scoda Tubes
Scoda Tubes is a stainless-steel tubes and pipes manufacturer, catering to a diverse range of customers like engineering companies, EPC, and industrial companies engaged in oil and gas, chemicals, fertilisers, power, pharmaceuticals, automotive, railways, and transportation sectors.
The company has one manufacturing plant in Mehsana, Gujarat, which is in close proximity of around 200 kilometres from the Mundra port. Currently, the plant has a total installed capacity of 20,000 MTPA of mother hollow, 10,068 MTPA of seamless products, and 1,020 MTPA of welded products, according to the DRHP.
In the previous financial year, Scoda Tubes exported to 16 countries, including the US, Germany, Netherlands, Italy, Spain, and France.
The company reported revenue from operations of nearly Rs 400 crore and net profit of Rs 18 crore in the financial year 2023-24. The share of seamless products made up three-fourths of the total income. Domestic sales accounted for 80% of total turnover.
As of March 31, 2024, the debt pile stood at Rs 209 crore.
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