Scoda Tubes IPO Listing Tomorrow: Here’s What GMP, Subscription Status Hint Ahead of Debut

IPO Listing Buzz Builds as Investors Eye First-Day Performance

The equity markets are set to witness yet another SME debut as Scoda Tubes Limited gears up for its stock market listing on June 4, 2025. Following a highly subscribed Initial Public Offering (IPO), all eyes are now on how the shares will perform on their maiden trading day. The grey market premium (GMP), investor interest, and broader market sentiments offer early clues to what could unfold.

About the IPO

Scoda Tubes Limited, a stainless steel tube and pipe manufacturer based in Gujarat, launched its IPO under the SME segment on the NSE Emerge platform. The IPO opened for subscription from May 30 to June 3, with a price band of ₹90 to ₹95 per share and a lot size of 1,200 shares. The company aims to raise approximately ₹30.75 crore to fund working capital needs and general corporate purposes.

Subscription Status: A Strong Signal from Investors

The IPO received an overwhelming response from all investor categories. According to exchange data as of the close of subscription:

• Retail Portion: Subscribed 103.56 times

• NII (HNI) Portion: Subscribed 217.24 times

• Overall Subscription: Subscribed 160.34 times

Such a robust response suggests strong investor confidence in the company’s business fundamentals, sector outlook, and growth strategy.

GMP Signals a Positive Debut

As of June 3, the grey market premium (GMP) for Scoda Tubes IPO is hovering around ₹35–₹38 per share, implying an estimated listing price in the range of ₹130–₹133, which is a 35–40% premium over the upper issue price of ₹95.

While GMP is unofficial and speculative, it does reflect sentiment among informal market participants. Analysts, however, urge caution.

“GMPs are good indicators of momentum but are not always reflective of long-term value. For Scoda Tubes, a listing pop looks likely, but investors should focus on the company's earnings consistency and margin profile,” said Manish Shah, an SME IPO analyst at NVS Wealth.

Company Overview: Scoda Tubes at a Glance

Established in 2016, Scoda Tubes manufactures welded stainless steel pipes and tubes catering to sectors like oil and gas, pharmaceuticals, power, automotive, and chemicals. The company operates a manufacturing facility in Umbergaon, Gujarat, with a production capacity of over 7,000 MT annually.

Its clientele includes reputed domestic and international firms. The company has shown stable revenue growth and an improving EBITDA margin in recent fiscal years.

According to its Red Herring Prospectus (RHP), the company posted revenue of ₹56.3 crore and PAT of ₹5.4 crore in FY24, with net margins standing at 9.6%.

Market Context and Sector Trends

The demand for stainless steel tubes is rising steadily due to infrastructure growth, industrial expansion, and increasing focus on corrosion-resistant materials. The Indian stainless steel market is expected to grow at a CAGR of 7-8% over the next five years, providing a favorable backdrop for niche players like Scoda Tubes.

“The stainless steel industry is undergoing a transition driven by higher export demand and domestic infrastructure tailwinds. Smaller players with focused capacity and niche segments are gaining investor traction,” noted Ritika Mehta, industrial analyst at Centrum Broking.

Analyst Perspective: What to Expect on Listing Day

Analysts tracking SME listings believe that Scoda Tubes may see significant first-day gains due to the oversubscription levels and positive GMP trends. However, liquidity could be thin, and price volatility is likely, as is typical with SME listings.

“Given the 160x subscription and strong GMP, Scoda Tubes may list at a 35–40% premium. However, SME IPOs tend to see profit booking early, and investors must tread carefully post-listing,” said Amit Jain, Head of SME Research, Motilal Oswal.

Investor Outlook: Hold or Book Profits?

For investors who received allotments, the first-day premium may offer an attractive opportunity to book profits. However, long-term investors should assess the company’s growth trajectory, debt profile, and operational efficiency before making a decision.

Scoda Tubes' focus on product customization, consistent margins, and capacity utilization efficiency could support steady earnings growth, making it a potential candidate for long-term holding.

Key Risks:

• SME segment listings often face lower liquidity.

• Business concentration in stainless steel could be cyclical.

• High promoter holding (post-IPO) may limit float-based institutional interest.

Conclusion

Scoda Tubes' IPO listing on June 4 is likely to be a closely watched event, particularly in the vibrant SME market space. With strong subscription figures and a positive GMP, early gains seem likely. However, as always, investors should base decisions on fundamentals and not speculative trends.