The initial public offering of Hyderabad-based Hariom Pipe Industries received bids for 56.67 lakh shares against an IPO size of 85 lakh shares, getting subscribed 67 percent 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 3 percent 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.
The maker of mild steel (MS) billets, pipes and tubes, and hot rolled (HR) coils scaffolding is going to raise Rs 130 crore through the issue at the upper end of the price band.
The price band for 85 lakh share issue has been fixed at Rs 144-153 per share. The offer will close on April 5.
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A sum of Rs 50.05 crore from the issue will be used for capital expenditure, Rs 40 crore for working capital and the remaining for general corporate purposes.
Hariom Pipe caters to the southern and western Indian markets. Its MS pipes are marketed and sold in these geographies under the brand name Hariom Pipes. A substantial portion of the sponge iron, MS billets and HR strips produced by the company is used for captive consumption in manufacturing MS pipes and scaffolding.