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The shares of Hariom Pipe Industries made a strong debut on the bourses on Wednesday, listing at a premium against IPO price of ₹153. The shares listed at a premium of 39.87 per cent at ₹214 on the BSE, up ₹61 from its issue price and gained further post listing. At 10:16 am, the shares were trading at the day’s high of ₹224.70, up ₹71.70 or 46.86 per cent.
It listed at a premium of 43.79 per cent on the NSE at ₹220, up ₹67 from the issue price. It was trading at ₹225, up ₹72 or 47.06 per cent. The ₹130.05-crore initial public offering (IPO) of the iron and steel products manufacturer was subscribed 7.93 times.
While the portion reserved for retail individual investors was oversubscribed 12.15 times, the quota reserved for non-institutional investors was subscribed 8.87 times. Qualified institutional buyers (QIB) was subscribed 1.91 times. The company has reserved 30 per cent of the offer for QIBs and 35 per cent each for retail and non-institutional investors.
The net proceeds from the issue will be used for capital expenditure (₹50.05 crore), and working capital requirements (₹40 crore), besides general corporate purposes. Hariom Pipe Industries is a premium manufacturer of iron and steel products. The company has gone from strength to strength, evolving into an integrated steel manufacturer with a stronghold in the South Indian market and a diverse product portfolio consisting of mild steel (MS) billets, pipes and tubes, hot rolled (HR) coils, and scaffolding systems.
Santosh Meena, Head of Research, Swastika Investmart Ltd said, “The company’s good listing can be attributed to good market sentiments and good prospects for the Steel Pipes industry. The company has an integrated nature of operations, a cost-effective process, and an experienced management team, however, the cyclical nature of the industry, and commoditised nature of products make it suitable only for the aggressive investors in the long term.”
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