Hariom Pipe shares make a strong debut by listing at 44% premium
The Hyderabad-based company manufactures mild steel pipes, scaffolding, HR strips, MS billets, and sponge iron, majorly in western and southern India under the brand name 'Hariom Pipes'.
By Pawan Nahar, ETMarkets.com | Updated:
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New Delhi: Hariom Pipe Industries made a strong debut on Dalal Street as the steel and iron pipe manufacturer listed at Rs 220 on NSE, a premium of 44 per cent over its issue price of Rs 153. On the BSE, the counter listed at a premium of 40 per cent.
Santosh Meena, Head of Research, Swastika Investmart, said the good listing can be attributed to good market sentiments and good prospects for the steel pipes industry. "The company has an integrated nature of operations, a cost-effective process, and an experienced management team. However, the cyclical nature of the industry, and commoditized nature of products make it suitable only for the aggressive investors in the long term. Those who applied for listing gains can maintain a stop loss at Rs 195," Meena said.
The company had raised Rs 130.05 crore via primary route as it sold its shares in the range of Rs 144-153 between March 30-April 5. The issue consisted entirely of fresh shares.
The IPO was overall subscribed a little less than 8 times, thanks to heavy bidding from retail investors, whose quota was subscribed 12.15 times. The HNI portion was subscribed 8.9 times, whereas QIB allocation fetched less than two times bids.
The Hyderabad-based company manufactures mild steel pipes, scaffolding, HR strips, MS billets, and sponge iron, majorly in western and southern India under the brand name 'Hariom Pipes'.
Majority of the market participants were bullish on the company's sound business profile and strong fundamental but said rich pricing and high competition made it an aggressive bet for conservative investors.
The company operates two plants - one at Mahabubnagar district in Telangana, that manufactures finished steel products from iron scrap and sponge iron, and another one at Andhra Pradesh's Anantapur that manufactures sponge iron.
Santosh Meena, Head of Research, Swastika Investmart, said the good listing can be attributed to good market sentiments and good prospects for the steel pipes industry. "The company has an integrated nature of operations, a cost-effective process, and an experienced management team. However, the cyclical nature of the industry, and commoditized nature of products make it suitable only for the aggressive investors in the long term. Those who applied for listing gains can maintain a stop loss at Rs 195," Meena said.
The company had raised Rs 130.05 crore via primary route as it sold its shares in the range of Rs 144-153 between March 30-April 5. The issue consisted entirely of fresh shares.
The IPO was overall subscribed a little less than 8 times, thanks to heavy bidding from retail investors, whose quota was subscribed 12.15 times. The HNI portion was subscribed 8.9 times, whereas QIB allocation fetched less than two times bids.
The Hyderabad-based company manufactures mild steel pipes, scaffolding, HR strips, MS billets, and sponge iron, majorly in western and southern India under the brand name 'Hariom Pipes'.
Majority of the market participants were bullish on the company's sound business profile and strong fundamental but said rich pricing and high competition made it an aggressive bet for conservative investors.
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The company operates two plants - one at Mahabubnagar district in Telangana, that manufactures finished steel products from iron scrap and sponge iron, and another one at Andhra Pradesh's Anantapur that manufactures sponge iron.
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