Rs 220 crore IPO is entirely a fresh issue; funds to be used for expansion and working capital. |
Mumbai: Stainless-steel pipes and tubes maker Scoda Tubes has announced a price band of Rs130 to Rs140 per share for its upcoming Rs 220-crore Initial Public Offering (IPO).
The IPO will open for public subscription on May 28 and will close on May 30. A one-day bidding window for anchor investors will open on May 27, the Gujarat-based company said in a statement on Friday.
The IPO is entirely a fresh issue, meaning that the money raised will go directly to the company. There is no offer for sale (OFS) component, where existing shareholders sell their shares.
Scoda Tubes will use the IPO proceeds to expand its production capacity for seamless and welded tubes and pipes. The funds will also be used for working capital needs and general corporate purposes.
At the upper end of the price band, the company is valued at around Rs 840 crore, as estimated by brokerage firms.
Scoda Tubes serves a diverse customer base. Its clients include companies in oil and gas, chemicals, fertilisers, and power sectors. It also supplies to EPC (Engineering, Procurement, and Construction) firms and other industrial users.
As per the allocation structure, 50 per cent of the issue size is reserved for Qualified Institutional Buyers (QIBs). Around 35 per cent is for retail investors, and the remaining 15% is for non-institutional investors.
Monarch Networth Capital is the book-running lead manager for the IPO.
The company’s shares are expected to be listed on both the BSE and NSE. The likely listing date is June 4.
Scoda Tubes is looking to grow its business through this fresh capital. The IPO offers an opportunity for investors to be part of the company’s expansion journey in the steel tubes and pipes sector.
(With PTI Inputs)
