Scoda Tubes IPO gets subscribed twice the offer size on Day 1 of share sale

The initial public offer of stainless-steel tubes and pipes manufacturer Scoda Tubes got subscribed 2.06 times on the first day of share sale on Wednesday.

The IPO received bids for 24,353,100 shares against 11,846,169 shares on offer, as per data available with the NSE.

The portion for non-institutional investors received 2.86 times subscription while the category for Retail Individual Investors (RIIs) got subscribed 2.09 times. The quota for Qualified Institutional Buyers (QIBs) fetched 1.40 times subscription.

Scoda Tubes on Tuesday raised Rs 66 crore from anchor investors. 

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 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 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.