Rs220 Cr initial public offer opens on May 28, 2025; Floor Price is 13 times the face value of Equity Shares; Cap Price
FinTech BizNews Service
Mumbai, May 23, 2025: Scoda Tubes Limited (“STL” or “The Company”) shall open its Bid / Issue in relation to its initial public offer of Equity Shares on Wednesday, May 28, 2025.
The Anchor Investor Bidding Date shall be Tuesday, May 27, 2025. The Bid/Issue will open on Wednesday, May 28, 2025 for subscription and will close on Friday, May 30, 2025. Bids can be made for a minimum of 100 Equity Shares and in multiples of 100 Equity Shares thereafter. (“Bid Details”)
The Price Band of the Issue has been fixed at Rs130 to Rs140 per Equity Share. (“Issue Price”).
The total Issue size of Equity Shares with face value Rs 10 each aggregating up to Rs 2,200
million (Rs 220 crore) comprises only of fresh issue of Equity Shares. (“Total Issue Size”)
The company proposes to utilize the net proceeds from the issue towards the following
objects –(i) Capital expenditure towards expanding production capacity of seamless and
welded tubes and pipes estimated to be Rs 769.90 million (Rs 76.99 crore); (ii) Funding the
part incremental working capital requirements of the company estimated to be Rs 1,100
million (Rs 110 crore) and general corporate purposes. (the “Objects of the Issue”)
This Equity Shares are being offered through the “Red Herring Prospectus” of the
Company dated May 22, 2025 filed with Registrar of Companies, Ahmedabad at
Gujarat(“RHP”) and are proposed to be listed on the BSE Limited (“BSE”) and the National
Stock Exchange of India Limited (“NSE”). For the purposes of the Issue, the Designated
Stock Exchange shall be NSE.
This is an Issue in terms of Rule 19(2)(b) of the SCRR, read with Regulation 31 of the
SEBI ICDR Regulations. The Issue is being made through the Book Building Process in
terms of Regulation 6 (1) of the SEBI ICDR Regulations, wherein not more than 50% of
the Issue shall be available for allocation on a proportionate basis to Qualified Institutional
Buyers (“QIBs and such portion, the “QIB Portion”), provided that our Company, in
consultation with the BRLM, may allocate up to 60% of the QIB Portion to Anchor
Investors on a discretionary basis (“Anchor Investor Portion”), out of which one-third
shall be reserved for domestic Mutual Funds, subject to valid Bids being received from
domestic Mutual Funds at or above the price at which allocation is made to Anchor
Investors (“Anchor Investor Allocation Price”), in accordance with the SEBI ICDR
Regulations. In the event of under-subscription, or non-allocation in the Anchor Investor
Portion, the balance Equity Shares shall be added to the Net QIB Portion.
Further, 5% of the Net QIB Portion shall be available for allocation on a proportionate
basis to Mutual Funds only, and the remainder of the Net QIB Portion shall be available for
allocation on a proportionate basis to all QIB Bidders, including Mutual Funds, subject to
valid Bids being received from them at or above the Issue Price. However, if the aggregate
demand from Mutual Funds is less than 5% of the Net QIB Portion, the balance Equity
Shares available for allocation in the Mutual Fund Portion will be added to the remaining
Net QIB Portion for proportionate allocation to QIBs.
Further, not less than 15% of the Issue shall be available for allocation to Non-Institutional
Bidders (“Non-Institutional Portion”) (of which one third of the Non-Institutional Portion
shall be reserved for Bidders with an application size between Rs 0.20 million up to Rs 1
million and two-thirds of the Non-Institutional Portion shall be reserved for Bidders with an
application size exceeding Rs 1 million) and under-subscription in either of these two sub-
categories of Non-Institutional Portion may be allocated to Bidders in the other
subcategory of Non-Institutional Portion, subject to valid Bids being received at or above
the Issue Price and not less than 35% of the Issue shall be available for allocation to Retail
Individual Bidders in accordance with the SEBI ICDR Regulations, subject to valid Bids
being received from them at or above the Issue Price.
All potential Bidders (except Anchor Investors) are mandatorily required to participate in
the Issue through the Application Supported by Blocked Amount (“ASBA”) process by
providing details of their respective ASBA accounts and UPI ID in case of UPI Bidders
using the UPI Mechanism, as applicable, pursuant to which their corresponding Bid
Amount will be blocked by the Self Certified Syndicate Banks (“SCSBs”) or by the Sponsor
Bank under the UPI Mechanism, as the case may be, to the extent of the respective Bid
Amounts. Anchor Investors are not permitted to participate in the Issue through the ASBA
Process.
Monarch Networth Capital Limited is the Book Running Lead Manager to the Issue.
(“BRLM”)
