Hariom Pipe hits the roof on debut

Shares of Hariom Pipe Industries hit an upper circuit of 5% at Rs 224.70 on the BSE, a premium of 46.86% compared with the issue price of Rs 153.

The scrip was listed at Rs 214, a premium of 39.87% to the initial public offer (IPO) price.

The scrip hit an intraday low of Rs 214 in early trade. Over 1.96 lakh shares of the company have changed hands in the counter till now.

The IPO of Hariom Pipe Industries was subscribed 7.93 times. The issue opened for bidding on 30 March 2022 and it closed on 5 April 2022. The price band of the IPO was fixed at Rs 144 - Rs 153 per share.

The offer comprised fresh issue of 85,00,000 equity shares with Rs 130.10 crore at upper price band of Rs 153 and Rs 122.40 crore at lower price band of Rs 144. The company proposes to utilize the net proceeds from the issue towards funding capital expenditure requirements amounting Rs 50.05 crore, funding the working capital requirements amounting Rs 40 crore and balance towards general corporate purposes.

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.

The company reported a net profit of Rs 12.87 crore and total income of Rs 200.87 crore for the six months ended September 2021.

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