Scoda Tubes shares hit the 5 percent upper circuit, shortly after making a flat stock market debut on Wednesday. The shares of the company listed flat despite the issue being subscribed 54 times in the primary market between May 28 to May 30.
Shares of stainless-steel tubes and pipes manufacturer Scoda Tubes were listed at Rs 140 per share on the NSE. On the BSE too, the shares of the company were listed flat at Rs 140. The price band for the issue was fixed at Rs 130-140 per share.
Shortly after, the shares hit the upper circuit to hit Rs 147 per share on the NSE, rising 5 percent. The total market capitalization of the company stood at Rs 880.66 crore.
The Rs 220-crore initial public offering of Scoda Tubes received bids for 63.70 crore shares.
On listing day strategy, Solanki advised investors to hold the stock for the long term. "The company's key differentiator lies in its backward-integrated manufacturing process, which helps reduce dependence on third-party suppliers and improves cost efficiency. Considering the fully priced valuation, we maintain a long-term subscribe view," he said.
Scoda Tubes shares to list today shortly; experts recommend this trading strategy
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 said.
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