Hariom Pipe Industries Limited-IPO – Globe Capital
Hariom Pipe Industries Limited-IPO
Closed
Price Band
Rs. 144 - 153
IPO Issue Period
March 30, 2022 to April 05, 2022
Issue Size
Rs. 130.05 Cr.
Face value
Rs. 10/-
Fresh issue
Rs. 130.05 Cr.
Offer for sale
NIL
Minimum Shares for Retail
98 shares
Listing on
NSE, BSE
Issue Type
Book Building
Registrar to the Issue
Bigshare Services Pvt Ltd
Tentative Listing Date
Apr 13, 2022
QIB
Not More than 30% of the offer
NII
Not less than 35% of the offer
Retail
Not less than 35% of the offer

ITI Capital Ltd

Hariom Pipe Industries Limited (“Hariom”) was incorporated on June 21, 2007. Hariom is an integrated manufacturer of Mild Steel (MS) Pipes, Scaffolding, HR Strips, MS Billets, and Sponge Iron. As part of the B2B sales, the company sells MS Pipes and Scaffoldings to specific developers and contractors. Hariom Pipe Industries has more than 200 dealers and distributors for selling its products. The company is located in Hyderabad, Telangana.

The company operates two plants, one at Mahabubnagar District in Telangana (Unit I) that manufactures finished steel products from iron scrap and sponge iron and the second plant at Anantapur District, Andhra Pradesh (Unit II) that only manufactures Sponge Iron.

Hariom Pipe Industries has more than 200 employees, 1400 plus Retailers distribution network, 150 plus manufacturing specifications, and a total of 300832 MT manufacturing capacity. Rupesh Kumar Gupta and Sailesh Gupta are the company promoters.

For year/ period ended ( in Cr.)

H1FY22 FY21 FY20
Total Revenue 200.87 254.14 160.78
Profit After Tax 12.87 15.13 7.91
EPS 15.12* 10.64 5.98
OPM (%) 12.86% 13.17% 12.95%
PATM (%) 6.40% 5.94% 4.91%
  • Integrated nature of our operations.
  • Environment-friendly manufacturing process.
  • The strategic location of manufacturing Units.
  • Cost advantage in manufacturing our products.
  • Competitive pricing of our products.
  • Experienced & Qualified Team.
  • Funding capital expenditure requirements.
  • Funding the working capital requirements of our Company.
  • General corporate purposes.

The company is available at the upper end of the IPO price band at 15.1x its FY22 annualized earnings. At the upper end of the IPO price band, the issue is priced at a P/BV of 3.1x based on its NAV of Rs. 49.79 as of March 31, 2021. The Company have delivered good growth in Sales over past few years along with stable margin profile. Hence, investor can subscribe this issue for medium to long term perspective.

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