Hariom Pipe Industries IPO Opens Today – Should You Invest in Hariom Pipe IPO?

The INR 130.05 crore Hariom Pipe IPO has opened for subscription today and will remain open till 5th April 2022. The company specializes in the manufacture of a wide range of iron and steel products, including Mild Steel (MS) Pipes, Scaffolding, HR Strips, MS Billets, and Sponge Iron.

MS Pipes manufactured by the company is marketed under the brand name ‘Hariom Pipes’ in the western and southern markets of India. The company also sells MS Pipes and Scaffoldings to specific developers and contractors as part of its B2B sales. The company has a well-established network of more than dealers and distributors.

Incorporated in the year 2007, the company operates two plants in Mahabubnagar District in Telangana and Anantapur District, Andhra Pradesh.

Hariom Pipe Industries has more than 200 employees, a 1400-plus retailer distribution network, 150-plus manufacturing specifications, and a total of 300832 MT manufacturing capacity.

According to the Red Herring Prospectus (RHP), the company plans to use the proceeds of the IPO for funding the company’s capital expenditure, working capital requirements and expenses for general corporate purposes.

Some quick facts about the Hariom Pipe IPO:

Price band of the IPO

The price band for the IPO is between Rs. 144 and Rs. 153 per share.

Lot size

The minimum lot size for the IPO is 98 shares.

Issue size

The issue size is Rs. 130.05 crores.

Listing date

Shares of Hariom Pipe are likely to be listed on 30th December 2021.

Key strengths and opportunities

• The company makes use of an environment-friendly manufacturing process
• Manufacturing units of the company are strategically located
• Cost advantage in manufacturing our products
• The company’s products are competitively priced
• Well-experienced & qualified management team

Key factors to keep in mind while investing in the Hariom Pipe IPO:

In its Red Herring Prospectus, the company has listed some factors which may impact the future performance of the company, such as:

• Any increase in prices of raw materials or any decrease in the supply would materially adversely affect the company’s business.
• The company sells its products through a large network of distributors and dealers. Any payment delay or default in payments or deficiency in services by any of the company’s channel partners could adversely affect the company’s goodwill and operations.
• Disruption of third-party mining operations may impact the company’s ability to obtain raw materials at reasonable prices, thus affecting the company’s business and results of operations
• The company operates in a segment where there is intense competition from both domestic companies and multi-national companies with wider product ranges, bigger brand recognition, stronger sales forces and larger financial resources and experience.

For a complete list of risk factors, please refer to the Red Herring Prospectus.

– Written and contributed by Pradeep Sukumaran.