Ahead of IPO, Scoda Tubes raises Rs 66 crore from anchor investor

Stainless-steel tubes and pipes manufacturer Scoda Tubes on Tuesday raised Rs 66 crore from anchor investors, a day before its initial share sale opening for public subscription.

The anchor investors who invested in the company are Malabar India Fund, MNCL Capital Compounder Fund 2, Aarth AIF Growth Fund, IMAP India Capital Investment Trust - Catalyst New India Fund, Chhattisgarh Investments and Swyom India Alpha Fund, according to a circular uploaded on BSE's website.

As per the circular, Scoda Tubes allotted 47,14,200 equity shares to these anchor investors at Rs 140 a piece, which is also the upper end of the price band.

The Gujarat-based company's IPO is entirely a fresh issue of equity shares, aggregating up to Rs 220 crore with no offer for sale (OFS) component.

The issue, with a price band of Rs 130-140 per share, will open for public subscription on May 28 and conclude on May 30.

Proceeds of the issue will be used to expand the production capacity of seamless and welded tubes and pipes, working capital requirements and general corporate purposes.

The company is valued at around Rs 840 crore at the upper end of the price band, the brokerages said.

The company is a stainless-steel tubes and pipes manufacturer, catering to a diverse range of customers like EPC, and industrial companies engaged in oil and gas, chemicals, fertilisers, power, etc.

Monarch Networth Capital is the book-running lead manager to the IPO. The shares of the company are expected to be listed on the BSE and NSE on June 4.