Hariom Pipe hits record high on commercial production of melting furnace

Hariom Pipe Industries surged 10.38% to Rs 315.85 after the company said that it has completed the setting up of 15 ton electric melting furnace and its commercial production will commence from today.

This set up will increase the company's production of MS billets from the current 95,832 metric tonnes per annum (MTPA) to 1,04,232 MTPA. This is in line with the objects as set out in the company's prospectus at the time of its maiden IPO.

Hariom Pipe Industries is an integrated manufacturer of mild steel (MS) pipes, scaffolding, HR (hot rolled) strips, MS billets and sponge iron. The company uses iron ore to produce sponge iron which is then processed across various stages to manufacture final products viz. MS pipes and scaffolding.

Shares of Hariom Pipe Industries debuted on the bourses on 13 April 2022. The scrip was listed at Rs 214, representing a premium of 39.87% to the initial public offer (IPO) price of Rs 153.

The company reported 28.9% rise in net profit to Rs 9.27 crore on 11.4% increase in net sales to Rs 127.06 crore in Q2 FY23 over Q2 FY22.

The scrip hit an all time high of Rs 319.40 in intraday today on the BSE.

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