Hariom Pipe Industries Shares Surge On Strong Market Debut

The ₹130-crore initial public offering (IPO) of Hariom Pipe Industries was subscribed 7.93 times on the final day of bidding on the back of a strong support from retail investors. The issue, which kicked off for subscription on March 30, concluded on April 5 with the price band of ₹144-153.

“The company’s good listing can be attributed to good market sentiments and good prospects for the Steel Pipes industry. The company has an integrated nature of operations, a cost-effective process and an experienced management team, however, the cyclical nature of the industry, and commoditized nature of products make it suitable only for the aggressive investors in the long term. Those who applied for listing gains can maintain a stop loss of ₹195,” said Santosh Meena, Head of Research, Swastika Investmart.

The initial share sale of Hariom Pipe Industries received robust response from retail investor as the portion set aside for them was subscribed the most at 12.15 times, followed by non-institutional investors (8.87 times) and qualified institutional buyers (1.91 times).

The company said that the proceeds generated from the issue will be utilised for funding capital expenditure requirements, working capital requirements and the remaining for general corporate purpose.

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.