The company is selling 8,500,000 fresh equity shares in the price range of Rs 144-153 apiece.
According to the data from BSE, the issue received bids for 1,26,05,544 equity shares or 1.48 times as of Day 2. Retail portion was booked 3.55 times, whereas the HNI quota was subscribed only 32 per cent. The QIB portion fetched 44 per cent bids.
Hyderabad-based Hariom Pipe manufactures iron and steel products including mild steel (MS) pipes, scaffolding, HR strips, MS billets and sponge iron.
The company sells and markets MS pipes in the western and southern parts of India under the ‘Hariom Pipe’ brand name through more than 1,400 distributors and dealers.
The majority of the analysts are positive on the issue and have recommended subscribing to it. However, a few of them have a word of caution for investors due to aggressive valuations and higher competition in the market.
The company with its integrated nature of the operations has an environmentally friendly manufacturing process with the strategic location of manufacturing units and competitive pricing of the products, said Hem Securities with a subscribe rating.
“We assign ‘Subscribe (With Caution)’ rating to this IPO as the company’s backward integration of production process provides a cost advantage over its competitors and is available at reasonable valuation as compared to its peers,” Choice Broking said.
