Hariom Pipe Industries IPO Final Subscription Status: 7.93 times subscribed
The Rs 130-crore IPO as per the upper band, received bids of 6,74,04,596 equity shares as against the offered 85,00,000 equity shares, at a price band of Rs 144-153 apiece.
Metal pipes manufacturing company Hariom Pipe Industries’ initial public offer (IPO) was subscribed 7.93 times on the final day of bidding, according to the data available on the BSE website. The three-day initial share-sale offer was launched between March 30 and April 5, 2022.
The Rs 130-crore IPO as per the upper band, received bids of 6,74,04,596 equity shares as against the offered 85,00,000 equity shares, at a price band of Rs 144-153 apiece.
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The retail portion was subscribed the most with 12.15 times, followed by non-institutional investors with 8.87 times. The qualified institutional buyers quote witnessed a subscription of 1.91 times.
The proceeds from the fresh issue to the tune of Rs 50.05 crore will be used for funding capital expenditure requirements; while Rs 40 crore will be used for funding working capital requirements and remaining for general corporate purposes.
ITI Capital Limited is the sole book running lead manager to the offer.
Hariom Pipe is an integrated manufacturer of Mild Steel (MS) Pipes, Scaffolding, HR Strips, MS Billets, and Sponge Iron. Headquartered in Hyderabad, Telangana, the company manufactures steel products and has a wide distribution network in South India.
The company caters directly and indirectly to customer requirements in various sectors such as housing, infrastructure, agriculture, auto, solar power, power, cement, mining, and engineering.
As per brokerages, the issue is valued at an EV/EBITDA of 10.2x based on FY21 EBITDA. From FY19 to FY21, the company had excellent sales growth while maintaining a stable margin profile.
Plants strategically positioned with integration, competitive product pricing, cost-effectiveness, capacity expansion, experienced management, and a growing network will drive future success, several brokerages had noted.
The company’s credit rating for a long term has been upgraded from ‘CRISIL BBB / Stable’ to ‘CRISIL Triple BBB+ Outlook: Stable’ in the fiscal 2022.
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