Scoda Tubes hits 5% upper circuit for second day in a row after stock listing

The stock rose 5% to ₹154.34 apiece, its upper circuit limit, on the National Stock Exchange (NSE).

The company's market valuation stands at ₹924.69 crore.

On Wednesday, the scrip debuted at ₹140 on the NSE and the BSE at par with the issue price. It later hit a 5% upper circuit on both exchanges.

Non-institutional investors led the bidding, subscribing their portion 113.03 times, while the quota for qualified institutional buyers, or QIBs was booked 69.51 times. The retail investors attracted 19.40 times the subscription.

The initial public offering had a price band of ₹130 to ₹140 per share.

The Gujarat-based company's offer was exclusively a fresh issuance of shares, valued at ₹220 crore. There was no offer for sale (OFS) component.

The funds generated will be utilised to increase production capacity and serve general corporate purposes as well as working capital requirements.

Scoda Tubes is engaged in the production of stainless-steel tubes and pipes. Its products find application in EPC and industrial firms engaged in power, oil and gas, fertilisers, chemicals, etc.

In the financial year 2023-24, the company had posted a 30.76% jump in its revenue from operations to ₹402.49 crore as against ₹307.79 crore in the previous fiscal year.

The net profit stood at ₹18.3 crore in FY24, up 76.98% from ₹10.34 crore in FY23.