The Indian IPO market is buzzing with excitement as four major companies—Scoda Tubes Ltd, Prostarm Info Systems Ltd, Schloss Bangalore Ltd (Leela Hotels), and Aegis Vopak Terminals Ltd—launch their public offerings in the last week of May 2025. With a combined fundraising target of over ₹6,600 crore, these IPOs span diverse sectors, including stainless steel manufacturing, power solutions, luxury hospitality, and logistics. But should you invest? In this blog, we break down the key details of each IPO, their financials, growth prospects, and grey market premium (GMP) trends to help you make an informed decision.
1. Scoda Tubes IPO: A Stainless Steel Powerhouse
IPO Details
Issue Size: ₹220 crore (100% fresh issue, no offer for sale)
Price Band: ₹130–₹140 per share
Subscription Dates: May 28–30, 2025
Lot Size: 100 shares (minimum investment: ₹14,000 for retail investors)
Listing Date: June 4, 2025 (tentative, BSE & NSE)
Lead Manager: Monarch Networth Capital Ltd
Registrar: MUFG Intime India Private Limited (Link Intime)
Company Overview
Scoda Tubes Ltd, incorporated in 2008, is a leading manufacturer of stainless steel seamless and welded tubes and pipes, marketed under its own brand. Its products cater to industries such as oil and gas, chemicals, pharmaceuticals, automotive, and railways. The company reported strong financial growth, with revenue increasing from ₹307.79 crore in FY23 to ₹402.49 crore in FY24, and profit rising from ₹10.34 crore to ₹18.3 crore in the same period. For the nine months ending FY25, revenue stood at ₹363.5 crore, with a profit of ₹24.9 crore.
Use of Proceeds
The ₹220 crore raised will be allocated as follows:
Expansion of Production Capacity: Enhancing manufacturing capabilities for seamless and welded tubes and pipes.
Working Capital Needs: Supporting operational efficiency.
General Corporate Purposes: Funding strategic initiatives.
Grey Market Premium (GMP)
As of May 28, 2025, the GMP for Scoda Tubes IPO is ₹18, indicating an estimated listing price of ₹158 per share—a potential 12.86% listing gain over the upper price band of ₹140. However, GMP trends have shown a slight decline, with a range of ₹16–₹22 over recent sessions, suggesting cautious optimism.
Should You Invest?
Scoda Tubes’ strong financial growth and diversified client base make it an attractive long-term investment. The company’s focus on high-demand sectors like oil and gas and its expansion plans signal robust growth potential. However, posts on X highlight concerns about high working capital days (153 days), indicating cash flow challenges, and a reliance on a top client for 18% of revenue, which poses concentration risks. Investors with a long-term horizon may find this IPO appealing, but cautious investors might wait for a few quarters to assess performance.
2. Prostarm Info Systems IPO: Powering the Future
IPO Details
Issue Size: ₹168 crore (fresh issue of 1.6 crore equity shares, face value ₹10)
Price Band: ₹95–₹105 per share
Subscription Dates: May 27–29, 2025
Lot Size: 142 shares (minimum investment: ₹14,910 for retail investors)
Listing Date: June 3, 2025 (tentative, BSE & NSE)
Lead Manager: Choice Capital Advisors Private Limited
Registrar: KFIN Technologies Limited
Company Overview
Founded in 2008, Prostarm Info Systems specializes in energy storage and power conditioning equipment, offering products like UPS systems, lithium-ion battery packs, solar hybrid inverters, and voltage stabilizers. The company serves sectors such as education, healthcare, railways, aviation, and defense. It operates three manufacturing facilities in Maharashtra and has a network of 21 branch offices across 18 states and one Union Territory. Financially, Prostarm reported revenue of ₹259.23 crore in FY24 (up from ₹232.35 crore in FY23) and a profit of ₹22.83 crore (up from ₹19.35 crore).
Use of Proceeds
The ₹168 crore raised will be used for:
Capital Expenditure: ₹72.50 crore for enhancing manufacturing and infrastructure.
Debt Repayment: ₹17.95 crore to reduce financial liabilities.
Inorganic Growth and General Corporate Purposes: Funding acquisitions and strategic initiatives.
Grey Market Premium (GMP)
As of May 28, 2025, the GMP for Prostarm Info Systems IPO is ₹19, suggesting an estimated listing price of ₹124 per share—a potential 18.10% listing gain over the upper price band of ₹105. The GMP has shown an upward trend, ranging from nil to ₹25, indicating strong investor interest. The IPO was subscribed 6.80 times on its second day, with retail and non-institutional investors showing significant enthusiasm.
Should You Invest?
Prostarm Info Systems benefits from the growing demand for power solutions, driven by power shortages and the shift toward renewable energy like solar. Its consistent profitability (net profit doubled from ₹11.39 crore in FY22 to ₹23.33 crore in FY24) and diverse product portfolio make it a compelling choice. However, 38% of its FY24 revenue comes from its top five clients, posing concentration risks. Investors seeking exposure to the renewable energy and power solutions sector may consider applying, especially for potential listing gains.
3. Schloss Bangalore Ltd (Leela Hotels) IPO: Luxury Hospitality Leader
IPO Details
Issue Size: ₹3,500 crore (fresh issue of ₹2,500 crore + offer for sale of ₹1,000 crore)
Price Band: ₹413–₹435 per share
Subscription Dates: May 26–28, 2025
Lot Size: 34 shares (minimum investment: ≈₹14,790 for retail investors)
Listing Date: June 2, 2025 (tentative, BSE & NSE)
Lead Manager: Multiple, including ICICI Securities and BNP Paribas
Registrar: Not specified in provided data
Company Overview
Backed by Brookfield Asset Management, Schloss Bangalore Ltd operates the prestigious Leela Palaces Hotels and Resorts. The company reported a net profit in FY25, but prior years showed losses (₹2.13 crore in FY24 and ₹61.68 crore in FY23), reflecting challenges in its subsidiaries. As of March 2025, its borrowings exceeded ₹3,900 crore, underscoring the need for debt reduction.
Use of Proceeds
The fresh issue proceeds (₹2,500 crore) will be used for:
Grey Market Premium (GMP)
As of May 28, 2025, the GMP for Schloss Bangalore IPO is ₹2, indicating an estimated listing price of ₹437 per share—a modest 0.46% listing gain over the upper price band of ₹435. The GMP has ranged from nil to ₹20, but recent trends suggest subdued expectations. The IPO was subscribed only 17% on its second day, reflecting lukewarm investor response.
Should You Invest?
Schloss Bangalore’s brand strength in luxury hospitality is a key draw, but its inconsistent profitability and high debt levels raise concerns. The low subscription rate and minimal GMP suggest limited short-term listing gains. Long-term investors confident in India’s growing hospitality sector may consider this IPO, but cautious investors might prefer to monitor post-listing performance.
4. Aegis Vopak Terminals IPO: Logistics and Storage Giant
IPO Details
Issue Size: ₹2,800 crore (100% fresh issue, no offer for sale)
Price Band: ₹223–₹235 per share
Subscription Dates: May 26–28, 2025
Lot Size: 63 shares (minimum investment: ₹14,805 for retail investors)
Listing Date: June 2, 2025 (tentative, BSE & NSE)
Lead Managers: ICICI Securities, BNP Paribas, IIFL Capital Services, Jefferies India, HDFC Bank
Registrar: Not specified in provided data
Company Overview
Aegis Vopak Terminals, a joint venture between Aegis (India) and Vopak India BV (Royal Vopak, Netherlands), is India’s largest third-party owner of tank storage terminals for LPG and liquid products, contributing 25.53% of India’s third-party liquid storage capacity as of December 2024. The company reported revenue of ₹570.12 crore in FY24 (up from ₹355.99 crore in FY23) and a profit of ₹86.54 crore in FY24, reversing a ₹0.08 crore loss in FY23.
Use of Proceeds
The ₹2,800 crore raised will be allocated as follows:
Debt Repayment: ₹2,016 crore to reduce financial liabilities.
Capital Expenditure: ₹671.30 crore for acquiring a cryogenic LPG terminal in Mangalore.
General Corporate Purposes: Supporting operational needs.
Grey Market Premium (GMP)
As of May 28, 2025, the GMP for Aegis Vopak Terminals IPO is ₹1, indicating an estimated listing price of ₹236 per share—a marginal 0.43% listing gain over the upper price band of ₹235. The GMP has ranged from nil to ₹15, but recent stability reflects weak demand. The IPO was subscribed only 38% as of May 28, 2025.
Should You Invest?
Aegis Vopak’s dominant position in India’s storage and logistics sector and its critical role in energy supply chains are strong positives. However, 31% of its FY24 revenue comes from its top five customers, and 92% is derived from terminals on India’s west coast, indicating geographic and client concentration risks. The low GMP and subscription rate suggest limited short-term upside. Investors with a long-term outlook on India’s energy and logistics sector may find value, but short-term gains appear unlikely.
Comparative Analysis: Which IPO Should You Choose?
IPO | Issue Size | Price Band | GMP (May 28) | Estimated Listing Gain | Subscription (May 28) | Key Strengths | Key Risks |
|---|
Scoda Tubes | ₹220 crore | ₹130–₹140 | ₹18 | 12.86% | 49% (Day 1) | Strong financial growth, diverse sectors | High working capital days, client concentration |
Prostarm Info Systems | ₹168 crore | ₹95–₹105 | ₹19 | 18.10% | 6.80x (Day 2) | Growing power solutions demand, profitable | Client concentration, acquisition risks |
Schloss Bangalore (Leela) | ₹3,500 crore | ₹413–₹435 | ₹2 | 0.46% | 17% (Day 2) | Strong brand, hospitality growth | High debt, inconsistent profitability |
Aegis Vopak Terminals | ₹2,800 crore | ₹223–₹235 | ₹1 | 0.43% | 38% (Day 3) | Market leadership in storage | Client and geographic concentration |
Key Considerations for Investors
Short-Term Gains: Prostarm Info Systems and Scoda Tubes show the highest GMPs, indicating potential listing gains of 18.10% and 12.86%, respectively. These IPOs are likely to attract investors seeking quick returns.
Long-Term Potential: Scoda Tubes and Prostarm Info Systems benefit from strong sector tailwinds (manufacturing and renewable energy). Aegis Vopak’s critical role in logistics and Schloss Bangalore’s hospitality brand offer long-term value, but their high debt levels and concentration risks warrant caution.
Risk Tolerance: Investors comfortable with sector-specific risks (e.g., client concentration for Scoda and Prostarm, debt for Schloss and Aegis) may find these IPOs appealing. Those seeking safer bets might wait for post-listing performance.
Market Sentiment: The IPO market is heating up, with 85 DRHP filings in 2025, reflecting strong company confidence. However, only 8 out of 12 mainboard IPOs in 2025 have delivered listing gains, so selective investing is crucial.
Conclusion
The May 2025 IPOs of Scoda Tubes, Prostarm Info Systems, Schloss Bangalore, and Aegis Vopak Terminals offer diverse investment opportunities across manufacturing, power solutions, hospitality, and logistics. Prostarm Info Systems stands out for its strong subscription (6.80x) and high GMP (18.10% potential gain), making it a top pick for short-term investors. Scoda Tubes also shows promise with solid financials and a 12.86% GMP. Schloss Bangalore and Aegis Vopak Terminals may appeal to long-term investors, but their low GMPs and subscription rates suggest limited short-term upside.
Before investing, evaluate your risk appetite, investment horizon, and the companies’ fundamentals. Conduct thorough research or consult a financial advisor to align your decisions with your financial goals. Stay tuned to The ExpertSK for more updates on these IPOs and the buzzing Indian stock market!
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