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Hariom Pipe IPO : Dates, Issue Price, GMP, Subscription, Share Analysis and Allotment

March 31, 2022 05:54 PM

Hariom Pipe IPO : Dates, Issue Price, GMP, Subscription, Share Analysis and Allotment
Hariom Pipe is established in 2007.Hariom Pipe is an integrated manufacturer of Mild Steel (MS) Pipes, Scaffolding, HR Strips, MS Billets, and Sponge Iron

Hariom Pipe IPO: 

Trading in the company’s shares on the BSE and the National Stock Exchange is expected to start on April 13.

Hariom Pipe is established in 2007.Hariom Pipe is an integrated manufacturer of Mild Steel (MS) Pipes, Scaffolding, HR Strips, MS Billets, and Sponge Iron. They use iron ore to produce Sponge Iron which is then processed across various stages to manufacture our final products viz. MS Pipes and Scaffolding making our manufacturing process cost-effective.

They manufacture MS Pipes and Scaffoldings of more than one hundred fifty (150) different specifications and cater, directly and indirectly, to customer requirements in various sectors such as housing, infrastructure, agriculture, automotive, power, cement, mining, solar power and engineering.

Hariom Pipe IPO subscribed 1.48 times  on the second day of bidding.

The Hariom Pipe Industries IPO is subscribed 1.48 times on Mar 31, 2022 . The public issue subscribed 3.55 times in the retail category, 0.44 times in the QIB category, and 0.32 times in the NII category.

Hariom Pipe IPO subscribed 4.16 times on the first day of bidding.

The initial public offering of Hyderabad-based Hariom Pipe Industries received bids for 54.35 lakh shares against an IPO size of 85 lakh shares, getting subscribed 0.67 times on March 30, the first day of bidding.

Retail investors bid for 1.88 times of their quota and non-institutional investors put in bids for 0.03 times shares of reserved quota, while qualified institutional buyers are yet to bid

Up to 30 percent of the issue is for qualified institutional buyers, and up to 35 percent each is reserved for non-institutional and retail investors.

Hariom Pipe IPO Date, Details & Price Band

IPO Opening Dates 30 March 2022
IPO Closing Dates 05 April 2022
Price Band Update Soon
Offer For Sale NIL
Fresh issue 85,00,000 Equity Shares
Total IPO size 85,00,000 Equity Shares
Minimum bid (lot size) Update Soon
Face Value 10 INR Per Share
Retail Allocation 35%
Non-Institutional 15%
QIBs 50%
Listing On NSE, BSE

Also Read : LIC IPO : Dates, Issue Price, GMP, Subscription, Share Analysis and Allotment

Here are 10 key things about the Hariom Pipe public issue:

IPO dates:

Bidding for the Hariom Pipe shares on offer will start on March 30 and end on April 5. The anchor book, if any, will open for a day on March 29.

Price band:

The Hariom Pipe shares will be offered in the range of Rs 144 to Rs 153 each, which are 14.4 and 15.3 times, respectively, the face value (Rs 10) of the shares.

Public issue:

The Hariom Pipe company plans to raise Rs 122.4 crore at the lower end of the price band and Rs 130.05 crore at the upper end. The IPO is an offer of 8.5 million shares.

Reserved portions and lot size:

The company has reserved 30 percent of the offer for qualified institutional buyers and 35 percent each for retail and non-institutional investors.

Investors can bid for a minimum of 98 shares and in multiples of 98 shares thereafter. The minimum investment by a retail investor is Rs 14,994 for a single lot of 98 shares and the maximum investment is Rs 1,94,922 for 13 lots (1,274 shares).

Objectives of the issue:

The net proceeds from the offer will be used for capital expenditure (Rs 50.05 crore), and working capital requirements (Rs 40 crore), besides general corporate purposes.

Hariom Pipe Company profile and expansion:

Hyderabad-based Hariom makes mild steel (MS) pipes, scaffolding, hot-rolled strips, MS billets, and sponge iron, catering to the southern and western Indian markets. Its MS pipes are sold in these areas under the brand Hariom Pipes through more than 200 distributors and dealers.

Its plant in Mahabubnagar district in Telangana manufactures finished steel products from iron scrap and sponge iron. Another plant in the Anantapur district in Andhra Pradesh, acquired in September 2020, exclusively makes sponge iron.

The MS pipe and tubes market in India is expected to reach $1.69 billion by 2026, and the galvanised pipes market size can go up to $110.75 million. The market for HR strips and coils could increase to $5.42 billion and MS billets market size to $980 million by 2026, according to the company.

With the net proceeds of the issue, the company will expand its MS pipe manufacturing capacity by setting up two additional mills adjacent to the existing Unit I. This expansion will increase the capacity to 1,32,000 MTPA from the present 84,000 MTPA.

It will also expand the furnace unit capacity, which will enhance production capacity to 1,04,232 MTPA from the existing capacity of 95,832 MTPA.

The Hariom Pipe company will continue to explore backward and forward integration initiatives to achieve the goal of becoming an end-to-end and cost-effective manufacturer.

Promoters:

Promoters Rupesh Kumar Gupta (managing director) and Sailesh Gupta (whole-time director) are third-generation entrepreneurs and individually have more than a decade of experience in the iron and steel industry. The promoters have a 99.1 percent shareholding in the company.

Financials:

Hariom Pipe profit rose 91.5 percent to Rs 15.13 crore in FY21 and revenue climbed 58 percent to Rs 254.13 crore. The company clocked a profit of Rs 12.87 crore on revenue of Rs 200.87 crore in the six months ended September 2021.

Its long-term borrowings stood at Rs 28.44 crore and short-term borrowings at Rs 59.87 crore as of September 2021, against Rs 33.9 crore and Rs 46.23 crore, respectively, at the end of March 2021.

Risks:

Any substantial increase in prices of raw materials and any decrease in supply will materially adversely affect the company’s business.

The steel and steel products industry is characterised by volatility in prices of raw materials and energy, which could adversely affect profitability.

The company had negative cash flows in recent fiscals. Sustained negative cashflow could adversely impact business, financial conditions, and results of operations.

Disruption of third-party mining operations could adversely impact its ability to obtain raw materials at reasonable prices.

The company derived a significant portion of its income from top 10 customers.

Allotment and listing dates:

The Hariom Pipe company will finalise share allotment by April 8 and credit shares to the eligible investors by April 12. Unsuccessful investors will get their refunds by April 11.

Trading in the company’s shares on the BSE and the National Stock Exchange will start on April 13.

Also Read : Ruchi Soya IPO: Dates, Issue Price, GMP, Subscription, Share Analysis and Allotment

ITI Capital is the book running lead manager to the issue and Bigshare Services is the registrar to the offer.

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