Hariom Pipe surges 50% on debut, ends at Rs 231 vs offer price of Rs 153

The Harini Pipe stock was locked in the 5 per cent upper circuit on both exchanges

Shares of Hariom Pipe Industries jumped more than 50 per cent over their issue price during their stock market debut on Wednesday. The stock ended at Rs 231, up 51 per cent over its issue price of Rs 153. The stock was locked in the 5 per cent upper circuit on both exchanges.

The strong debut of new listings such as Harirom and Ruchi Soya will boost retail sentiment towards forthcoming IPOs, said experts.

The Hyderabad-based firm's IPO garnered nearly 8 times more demand than shares on offer. The retail portion of the issue is subscribed 12.15 times, high networth individual (HNI) portion 8.9 times and qualified institutional buyer (QIB) portion 1.91 times.

Through the IPO, Hariom Pipe raised Rs 130 crore in fresh capital. At the last close, the company had a market cap of nearly Rs 572 crore. Hariom Pipe is an integrated manufacturer of mild steel pipes, scaffolding, HR strips, MS billets and sponge iron. In FY21, the company had clocked net profit of Rs 15.13 crore on total income of Rs 254.82 crore.