The initial public offering (IPO) of Hariom Pipe Industries was subscribed 7.93 times on the April 5, the final day of bidding. The public issue received bids for 6.74 crore equity shares as against 85 lakh units on offer. The issue, which kicked off for subscription on March 30, will close today.
The IPO received strong response from retail investors. The entire portion reserved for them was subscribed 12.15 times. On the other hand, the portion for qualified institutional buyers was subscribed 1.91 times and that of non-institutional investors was subscribed 8.87 times.
Hariom Pipe Industries, an integrated manufacturer of mild steel (MS) pipes, scaffolding, HR strips, MS billets, and sponge iron, intends to mop-up Rs 130 crore through its public issue, at upper price band.
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The price band for the offer has been fixed at Rs 144-153 per equity share.
The IPO proceeds after reducing issue expenses will be utilised for capital expenditure and working capital requirements.
The company has one integrated plant at Mahabubnagar in Telangana (Unit I), which manufactures finished steel products from iron scrap and sponge iron, while the other plant at Anantapur in Andhra Pradesh (Unit II) exclusively manufactures sponge iron. Most of the sponge iron produced at the Unit II is used as a raw material for manufacturing MS billets, HR strips, MS pipes and scaffolding.
It sells MS Pipes through more than 200 distributors and dealers to the southern and w estern Indian markets. They also sell MS pipes and scaffoldings to certain developers and contractors directly as B2B sales.
Hariom Pipe in FY21 recorded 91.5 percent growth in profit at Rs 15.13 crore compared to previous year, and its revenue rose 58 percent to Rs 254.13 crore. The company for first half of FY22 reported a profit of Rs 12.87 crore on revenue of Rs 200.87 crore.