As the economic activities pick pace post-pandemic, sectors such as housing and infrastructure are witnessing an uptick. Against this backdrop, Hyderabad-based integrated steel products maker Hariom Pipe Industries is looking to tap the equity markets. The company is planning to raise money to fund its capital expenditure and working capital requirements.
The company was incorporated in 2007. Since then, the company has been able to create a brand recall, resulting in strong sales numbers.
Here’s a look at Hariom Pipe Industries and its IPO’s key details.
Offer details
- Start date: 30 March 2022
- End date: 5 April 2022
- Price band: ₹144-₹153 per share
- Minimum investment: ₹14,994
- IPO size: ₹130 crore
Timeline
- Allotment: 8 April 2022
- Refund: 11 April 2022
- Credit of equity shares: 12 April 2022
- Listing: 13 April 2022
All about the IPO
Hariom Pipe Industries manufactures a wide range of finished steel products, such as Mild Steel (MS) pipes, scaffolding, hot-rolled (HR) Strips, MS billets, and sponge Iron. These products are used in industries such as housing, infrastructure, agriculture, automotive solar, fabrication and engineering.
It has a strong presence in southern and western markets and sells its products through 200 distributors and dealers. Also, the company makes MS Pipes and scaffoldings with more than 150 different specifications.
Also, Hariom Pipe Industries has optimised its manufacturing process. The manufacturing of sponge iron has helped the company to reduce its dependence on external sources for raw materials.
Financials
Revenue: 37%; Net Profit: 37% (FY19-21 CAGR)
Strengths
- The ability to change the product mix provides it with the flexibility to cater to a diverse customer base
- Manufactures a range of products with specific thickness, length, quality and demand
- Strong track record of profitability between FY19 and FY21, despite being marred by the pandemic
- Well experienced promoters and senior management
Risks
- In the first six months of FY22, around 62% of the total revenue came from its top 10 customers.
- Operates in a cyclical industry. Downturn in the economy could lead to a decrease in demand for its products
- Faces competition from domestic (APL Apollo Tubes and Hi-Tech Pipes) as well as large multinational companies
- The concentration of manufacturing units in southern India. Regional slowdown and natural disasters could adversely impact the business
Good to know
Rapid industrialisation and urbanisation, coupled with increased private and government investment in infrastructure is expected to push up the demand for steel products. Being one of the major players in this space, Hariom Pipe Industries could benefit from these positive macro developments.
FAQs
How can you pre-apply for Hariom Pipe Industries’ IPO?
Pre-applying for Hariom Pipe Industries’ IPO means applying for this public issue before it goes live. Click here and follow these steps to pre-apply for the Hariom Pipe Industries IPO on Upstox.
When does pre-apply for Hariom Pipe Industries’ IPO open and how can you pay for it?
You can pre-apply for Hariom Pipe Industries’ IPO from 29 March 2022. Once the IPO goes live, you will receive a UPI mandate. Accept this to block the IPO application amount and successfully place your bid.
How can you apply for Hariom Pipe Industries’ IPO?
Click here to apply for Hariom Pipe Industries’ IPO on Upstox. You can also download our app. Then click here and follow these steps.
When does Hariom Pipe Industries’ IPO open and close for the subscription?
Hariom Pipe Industries’ IPO is open for subscription between 30 March 2022 and 5 April 2022.
What’s the lot size and minimum investment needed for Hariom Pipe Industries’ IPO?
The lot size for Hariom Pipe Industries’ IPO is 98 shares and the minimum investment required is ₹14,994.
What is the price band for Hariom Pipe Industries’ IPO?
The price band for Hariom Pipe Industries’ IPO is ₹144-₹153 per share.
What’s the size of Hariom Pipe Industries’ IPO?
The size of Hariom Pipe Industries’ IPO is ₹130 crore.
How many bids can I place for the Hariom Pipe Industries’ IPO?
You can place up to three bids for an application.
Can these bids be placed at different times during the IPO subscription period?
No, the bids have to be placed at one go. If you want to add an additional bid, then you would have to delete your application and re-apply.
When will Hariom Pipe Industries’ shares be credited to your demat account?
If the shares are allotted, then they will be credited to your demat account on 12 April 2022. Click here and follow the steps to check the allotment status.
Which exchanges will Hariom Pipe Industries list on?
Shares of Hariom Pipe Industries will list on BSE and NSE.
When will Hariom Pipe Industries list on the exchanges?
Shares of Hariom Pipe Industries will list on 13 April 2022