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Hariom Pipe Industries Limited, which manufactures iron and steel products, plans to raise Rs 130.05 crore through initial public offering (IPO). The IPO subscription will open on March 30 and end on April 5.
The Hyderabad-based company has priced the IPO at Rs 144-153 per equity share and the face value of the share is Rs 10 apiece. The issue size is 85 lakh equity shares and the issue comprises of only fresh issue of equity shares.
Company Summary
Hariom is an integrated manufacturer of Mild Steel (MS) Pipes, Scaffolding, HR Strips, MS Billets, and Sponge Iron. The company supplies MS Pipes in the western and southern parts of India under the brand name “Hariom Pipes”.
The company operates two plants, one at Mahabubnagar district in Telangana (Unit I) that manufactures finished steel products from iron scrap and sponge iron. The second plant is located at Anantapur district, Andhra Pradesh (Unit II) that only manufactures Sponge Iron.
Hariom is located in Hyderabad, Telangana and it has more than 200 dealers and distributors for selling its products. The company has more than 200 employees, 1400 plus retailers distribution network, 150 plus manufacturing specifications, and a total of 3 lakh MT of manufacturing capacity.
Company Strengths
- Hariom’s integrated nature of operations is one of the major strengths and differentiators of the company. All intermediate products that are required for the manufacturing of our final products are produced in-house.
- Strategic location of manufacturing units with scope for expansion.
- The company has established low cost manufacturing process leading to cost advantage in manufacturing of products. It has also led to competitive pricing of the products.
- Addition of more value-added products to their product range.
- Experienced promoters and management team.
Company Financials
Particulars | For the period ended (Rs in lakh) | |||
Apr-Sept FY22 | FY21 | FY20 | FY19 | |
Total Assets | 198.81 | 173.74 | 139.67 | 103.35 |
Total Revenue | 201.16 | 254.82 | 161.15 | 133.91 |
Profit After Tax | 12.86 | 15.13 | 7.90 | 8.02 |
Purpose of the IPO
The company plans to utilise the capital for the following purposes,
- Funding of its capital expenditure requirements amounting to Rs 50.05 crore.
- Funding of working capital requirements of the company aggregating to Rs 40 crore.
- General corporate purposes.
Company Promoters
Rupesh Kumar Gupta and Sailesh Gupta are the promoters of the company.
IPO Details
IPO Opening Date | Mar 30, 2022 |
IPO Closing Date | Apr 5, 2022 |
Issue Type | Book Built Issue IPO |
Face Value | Rs 10 per equity share |
IPO Price | Rs 144 to Rs 153 per equity share |
Market Lot | 98 Shares |
Minimu Order Quantity | 98 Shares |
Listing At | BSE, NSE |
IPO Lot Size
|
Application |
Lots |
Shares |
Amount (Cut-off) |
|
Minimum |
1 |
98 |
Rs 14,994 |
|
Maximum |
13 |
1,274 |
Rs 194,922 |