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Hariom Pipe Industries has fixed a price bank of Rs 144-153 per equity share.New Delhi: The initial public offering (IPO) of Hariom Pipe Industries opened for subscription on Wednesday. As of 12:29 pm, the share sale received bids 35.39 lakh bids against the total size of 85 lakh shares on the first day of issuance, subscribing 42 per cent. The Rs 130.05 crore IPO will conclude on April 5, 2022.The retail individual investors’ portion was booked 1.20 times, while qualified institutional buyers (QIB) and non-institutional investors categories didn’t receive any subscription.The Hyderabad-based company has fixed a price bank of Rs 144-153 per equity share for a face value of Rs 10. Bids can be made for a minimum of 98 equity shares and in multiples of 98 equity shares thereafter.As per the offer, 30 per cent of the issue will be reserved for QIB and 35 per cent each for non-institutional and retail investors.Going by the draft papers, net proceeds from the initial share sale will be used to fund its capital expenditure, working capital requirements besides expenses for general corporate purposes.The company has a stronghold on its steel products with a wide distribution network across India and especially in the southern and western regions.It has a diverse product portfolio consisting of mild steel (MS) billets, pipes and tubes, hot-rolled (HR) voils and scaffolding systems and caters to diverse end-use industries such as housing, infrastructure, agriculture, automotive, solar, fabrication and engineering.Hariom Pipe plans to set up a new manufacturing plant at Sangareddy in Telangana with a total estimated installed capacity of 51,943 tonnes per annum.For 2020-21 (FY21), its total income stood at Rs 254.82 crore as against Rs 161.15 crore in the preceding fiscal. Its net profit stood at Rs 15.13 crore for the said period as compared to Rs 7.90 crore in the previous financial year.ITI Capital is the sole book-running lead manager and Bigshare Services Private Ltd is the registrar of the issue.Should You Buy?”Company is bringing the issue at a price band of Rs 144-153 per share at a price to equity (p/e) multiple of 16-17 times on pre-issue 2020-21 (FY21) earnings per share (eps) basis. Company with its integrated nature of the operations has an environment-friendly manufacturing process with the strategic location of manufacturing units and competitive pricing of the products. Looking after the financial performance of the company and valuations, issue looks decent. Hence, we recommend ‘Subscribe’ on the issue,” said brokerage firm Hem Securities.



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