Hariom Pipe Industries IPO was subscribed 1.84 times, with the retail portion booking 4.56 times on the third day of bidding
- ByStartupStory | April 2, 2022
On April 1, the third day of bidding, Hariom Pipe Industries’ initial public offering was oversubscribed 1.84 times, with offers for 1.56 crore equity shares versus an IPO size of 85 lakh shares. Retail investors are bidding 4.56 times their permitted quota of shares, putting them back in the lead. Qualified institutional buyers received 44% of the available shares, while non-institutional investors received 32%.
At the upper price band, which has been set at Rs 144-153, the issuance, which closes on April 5, will bring Hariom Pipe Industries Rs 130 crore. Apart from normal corporate reasons, the cash will be used for capital expenditures and servicing working capital requirements.
According to Marwadi Financial Services, the company will list at a P/E of 15.14x and 25.76x, respectively, with a market cap of Rs 389.8 crore, based on FY22 (annualized) and FY21 EPS of Rs 10.10 and Rs 5.94 on a post-issue basis. Its peers, JTL Infra and APL Apollo Tubes are trading at 30.5x and 44.3x, respectively.
Hariom Pipe Industries is a mild steel (MS) pipe, scaffolding, HR strips, MS billets, and sponge iron integrated manufacturer. It produces MS pipes and scaffoldings in over 150 distinct specifications for customers in the housing, infrastructure, agriculture, automotive, power, cement, mining, solar power, and engineering industries.
It has one integrated factory (Unit I) in Mahabubnagar, Telangana, that produces completed steel products from iron scrap and sponge iron, and another in Anantapur, Andhra Pradesh, that produces sponge iron. The company’s sponge iron is mostly utilized as a raw material for MS billets, HR strips, MS pipes, and scaffoldings.
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