Hariom Pipe IPO: The public issue comprises sale of 85 lakh equity shares of the company

Hariom Pipe Industries, Iron and steel products manufacturer, launched its three-day initial public offering (IPO) on Wednesday and received a subscription of about 67% against its total issue size. The company has fixed price band at ₹ 144 to ₹ 153 per equity share. The public issue comprises sale of 85 lakh equity shares of the company.

As on day 1, Hariom Pipe IPO's portion reserved for retail individual investors (RII) garnered an oversubscription of 1.88 times, while the portion reserved for non-institutional investors subscribed by merely 3%. There was no bidding from the qualified institutional buyers (QIB) on Day 1.

“The company with its integrated nature of the operations has environment friendly manufacturing process with strategic location of manufacturing units & competitive pricing of the products. Looking after financial performance of company & valuations, issue looks decent, we are recommending 'subscribe' on the issue," said Hem Securities in the IPO report.

Headquartered in Hyderabad and incorporated in 2007, the company has a diverse product portfolio consisting of Mild Steel (MS) billets, Pipes and tubes, Hot Rolled (HR) voils and scaffolding systems and caters to diverse end-use industries such as housing, infrastructure, agriculture, automotive, solar, fabrication and engineering.

“We assign 'Subscribe (With Caution)' rating to this IPO as the company’s backward integration of production process provides a cost advantage over its competitors and is available at reasonable valuation as compared to its peers. However, client concentration risk and cyclical nature of the business keeps us cautious from a long term perspective," said Saurabh Joshi, Research Analyst at Marwadi Financial Services.

The tentative date for share allotment of Hariom Pipes IPO is 8th April 2022, and the shares are likely to be listed on NSE and BSE on 13th April 2022.

Download the Mint app and read premium stories

Log in to our website to save your bookmarks. It'll just take a moment.

You are just one step away from creating your watchlist!

Oops! Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image.

Your session has expired, please login again.

You are now subscribed to our newsletters. In case you can’t find any email from our side, please check the spam folder.

This is a subscriber only feature Subscribe Now to get daily updates on WhatsApp