The initial public offering (IPO) of Hariom Pipe Industries opens today, March 30 and will close on April 5. It is the third IPO to launch in March after Veranda Learning Solutions and Uma Exports.
Price Band: The price band of the issue has been set at ₹144-153 per share. Investors can bid for a minimum of 98 equity shares and in multiples of 98 equity shares thereafter. At the upper-end of the price band, a single lot of shares would cost ₹14,994.
Fund Raise: The company plans to raise around ₹130.05 crore at the upper end of the price band through fresh issuance of 85 lakh shares.
Reservation: The company has reserved 30 percent of the offer for qualified institutional buyers and 35 percent each for retail and non-institutional investors.
Objective: The net proceeds from the offer will be used for capital expenditure ( ₹50.05 crore), and working capital requirements ( ₹40 crore), besides general corporate purposes, the draft papers said.
About the firm: Hariom Pipe Industries Limited was incorporated on June 21, 2007. Hariom is an integrated manufacturer of Mild Steel Pipes, Scaffolding, HR Strips, MS Billets, and Sponge Iron. It caters to the southern and western Indian markets for their products. Their Pipes are marketed and sold in these geographies under the brand name - Hariom Pipes.
The company was incorporated as ‘Hari Om Concast And Steels Private Limited’ at Hyderabad. Rupesh Kumar Gupta and Sailesh Gupta are the Promoters of the company and currently hold 71.3 lakh equity shares, aggregating to 42 percent of the issued, subscribed and paid-up equity share capital of the company.
The EBIDTA margin of the Company for fiscal 2021 is 13.72 percent. The total income and profit after tax for six months period ended September 30, 2021, stood at ₹201.16 crores and ₹12.87 crores respectively.
The company’s credit rating for long term has been upgraded from ‘CRISIL BBB / Stable’ to ‘CRISIL Triple BBB+ Outlook: Stable’ (pronounced Triple B Plus with Stable outlook) by CRISIL in the fiscal 2022.
Peers: Some of its listed peers include APL Apollo Tubes, Hi-Tech Pipes, Rama Steel Tubes and JTL Infra. For FY21 Hariom Pipes reported total income of ₹255 crore while APL Apollo's total income came in at ₹6,052 crore for the same period. Hi-Tech Pipes, Rama Steel Tubes and JTL Infra also reported higher total income than Hariom Pipes during FY21 at ₹1,027 crore, ₹329 crore and ₹440 crore, respectively.
