Hariom Pipe Industries IPO ends with good subscription

Published on Apr 06, 2022 11:02

The initial public offer (IPO) of Hariom Pipe Industries received bids for 6,74,04,596 shares as against 85,00,000 shares on offer. The issue was subscribed 7.93 times.

The retail investors category was subscribed 12.15 times. The non institutional investors category was subscribed 8.87 times. The qualified institutional buyers (QIBs) category was subscribed 1.91 times.

The issue opened for bidding on Wednesday (30 March 2022) and it closed on Tuesday (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.