Hariom Pipe Industries Ltd IPO
Listing Details
- Listing Exchange NSE, BSE
- Listing Date 13 Apr 2022
- IPO Price Range ₹ 144
- Listing Price ₹ 214
- Listing Change 39.9 %
- Last Traded Price ₹ 496.2
- Current Change 224.3 %
IPO Subscription Details
- Open Date 30 Mar
- Close Date 05 Apr
- Lot Size 98
- IPO Size ₹ 130.05 Cr
- IPO Price Range ₹ 144 to ₹153
- Min Investment ₹ 14112
- Listing Exchange NSE, BSE
- Basis of Allotment 08 Apr
- Refunds 11 Apr
- Credit to Demat Account 12 Apr
- Listing Date 13 Apr
Hariom Pipe Industries Ltd IPO Subscription Status
| QIB | NII | Retail | TOTAL | |
|---|---|---|---|---|
| Day 1 | 0.00x | 0.03x | 1.88x | 0.67 |
| Day 2 | 0.44x | 0.32x | 3.55x | 1.48 |
| Day 3 | 0.83x | 1.93x | 7.18x | 3.44 |
| Day 4 | 1.91x | 8.87x | 12.15x | 7.93 |
IPO Synopsis
Details on IPO
Hariom Pipe Industries has filed preliminary papers with SEBI to raise ₹100-120 crore through an initial public offering. The issue comprises sale of 85 lakh equity shares of the company.
The equity shares have a face value of Rs 10 each.
ITI Capital is the sole book-running lead manager to the issue
Objective of the Issue
Net proceeds from the initial share sale will be used
1. to fund its capital expenditure
2. working capital requirements
3. towards expenses for general corporate purposes
About Hariom Pipe Industries Ltd
Hariom is an integrated manufacturer of Mild Steel (MS) Pipes, Scaffolding, HR Strips, MS Billets, and Sponge Iron. It caters to diverse end use industries such as housing, infrastructure, agriculture, automotive, solar, fabrication and engineering.
The integrated plant at Mahabubnagar District in Telangana (Unit I) manufactures finished steel products from iron scrap and Sponge Iron and the other plant at Anantapur District, Andhra Pradesh (Unit II) exclusively manufactures Sponge Iron. Unit II is located near Bellary, one of the hubs in South India for iron ore production. The iron ore required to produce Sponge Iron at Unit II is mostly procured through the online bidding process.
MS Pipes are mostly sold through more than two hundred (200) distributors and dealers and the sale of MS Pipes and Scaffoldings to certain developers and contractors happens through directly as B2B sales. The key differentiator is their range of product specifications in terms of thickness, length, quality, availability and customised products.
Hariom Pipe Industries Ltd Financial Status
Profit and Loss
Balance Sheet
| Particulars (in Rs. Crores) | FY21 | FY20 | FY19 |
|---|---|---|---|
| Revenue | 2541.39 | 1607.77 | 1335.96 |
| EBITDA | 349.67 | 238.59 | 173.49 |
| PAT | 151.32 | 79.08 | 80.20 |
| Particulars (in Rs. Crores) | FY21 | FY20 | FY19 |
|---|---|---|---|
| Total Assets | 1737.40 | 1396.77 | 1033.51 |
| Share Capital | 169.61 | 132.33 | 132.33 |
| Total Borrowings | 801.75 | 681.66 | 558.21 |
| Particulars (in Rs. Crores) | FY21 | FY20 | FY19 |
|---|---|---|---|
| Net cash generated from / (used in) operating activities | 1737.40 | 1396.77 | 1033.51 |
| Net cash from / (used in) investing activities | -234.69 | -120.39 | -318.93 |
| Net cash flow from / (used in) financing activities | 120.92 | 92.11 | 323.54 |
| Net increase (decrease) in cash and cash equivalents | -8.91 | -23.12 | 36.81 |
Peer Comparison
| Name of the Company | Total Revenue | Basic EPS | Nav Rs. per share | PE | RoNW% |
|---|---|---|---|---|---|
| Hariom Pipe Industries Limited | 2,548.23 | 10.64 | 49.79 | NA | 21.38% |
| APL Apollo Tubes Ltd. | 60,520.01 | 12.34 | 116 | 76.68 | 10.61% |
| Hi-Tech Pipes Ltd | 10,272.84 | 13.75 | 154.99 | 44.73 | 8.66% |
| Rama Steel Tubes Ltd. | 3,288.35 | 3.24 | 52.68 | 79.01 | 6.08% |
| JTL Infra Ltd | 4,403.69 | 18.91 | 91.36 | 45.34 | 20.70% |
IPO Key Points
-
Strengths
1. Integrated nature of the operations
2. Environment friendly manufacturing process
3. Strategic location of manufacturing Units
4. Cost advantage in manufacturing the products
5. Competitive pricing of the products -
Risks
1. There are outstanding legal proceedings involving the company, promoters and certain directors
2. Absence of large customers and dependence on smaller customers increases uncertainty of demand
3. Any increase in prices and any decrease in the supply would have a material effect
4. The demand and pricing in the steel and steel products industry is volatile and is sensitive to the cyclical nature of the industries it serves
5. The steel and steel products industry is characterized by volatility in the prices of raw materials and energy
6. payment delay or default in payments or deficiency in services, by any of the channel partners
How to apply for IPO?
-
Login to your 5paisa account and select the issue in the
current IPO section -
Enter the number of lots and price at which you wish to
apply for -
Enter your UPI ID and click on submit. With this, your
bid will be placed with the exchange -
You will receive a mandate notification to block funds in
your UPI app -
Approve the mandate request on your UPI and funds
will be blocked
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IPO FAQs
What is the lot size and investment required for the Hari Om Pipe Industries IPO?
Minimum lot size is 98 shares and investment required is ₹14,994. A retail-individual investor can apply for up to 13 lots (1274 shares or ₹194,922).
What is the price band of the IPO?
The price band for the IPO ranges between ₹144 to ₹153 per equity share
When does the Hari Om Pipe Industries issue open and close?
The Hari Om Pipe Industries issues opens on Mar 30, 2022 and closes on Apr 5, 2022
What is the size of Hari Om Pipe Industries IPO issue?
The fresh issue comprises fresh issue of equity shares aggregating up to Rs 280 crore and an offer sale of up to 2.4 crore equity shares.
Who are the promoters/key personnels of Hari Om Pipe Industries?
Hari Om Pipe Industries is promoted by Dr. Ramesh Kancharla, Dr. Dinesh Kumar Chirla and Dr. Adarsh Kancharla.
What is the allotment date of Hari Om Pipe Industries IPO?
The allotment date is on Apr 8, 2022.
What is the Hari Om Pipe Industries listing date?
The listing date for Hari Om Pipe is on Apr 13, 2022
Who are the book runners for Hari Om Pipe Industries IPO?
Kotak Mahindra Capital Company, J.P. Morgan India and IIFL Securities are the book running lead managers to the issue.
What is the objective of the issue?
The proceeds will be used:
1) Early redemption of non-convertible debentures (NCDs) issued by the company, in full
2) Capital expenditure towards setting up of new hospitals
3) Purchase of medical equipment for such new hospitals
4) General corporate purposes
How to apply for the Hari Om Pipe Industries IPO?
To apply for the IPO, follow the steps given below
1) Login to your 5paisa account and select the issue in the current IPO section
2) Enter the number of lots and price at which you wish to apply for
3) Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange
4) You will receive a mandate notification to block funds in your UPI app
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