Hariom Pipe Industries shares listed at a stellar premium to the IPO worth on Wednesday whereas home markets soared increased. Shares of the corporate started buying and selling at Rs 220 per share on the NSE, up 43.79% from the higher finish of the IPO worth of Rs 153 per share. Hariom Pipe had a market capitalisation of Rs 545 crore on its market debut. The IPO of the corporate was oversubscribed by all pockets of buyers earlier this month. Retail buyers subscribed to the problem within the largest numbers. Sensex and Nifty had been buying and selling with good points, up greater than 0.50% every, trying to reverse their bearish momentum.
Hariom Pipe Industries Rs 130 crore preliminary public providing was completely a recent challenge of fairness shares. The promoter shareholding, post-issue, has been introduced all the way down to 66% from 99.1% earlier. Public shareholding within the firm has elevated to 34%. The IPO of the corporate was subscribed a complete of seven.93 occasions by buyers. Retail buyers bid for 12.15 occasions their portion of the problem whereas Non-Institutional Investors (NII) bid for 8.87 occasions the quota reserved for them. Qualified Institutional Buyers (QIB) had subscribed the problem 1.91 occasions.
The firm’s good itemizing will be attributed to good market sentiments and good prospects for the Steel Pipes trade, mentioned Santosh Meena, Head of Research, Swastika Investmart Ltd. “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 of Rs 195,” he added.
The firm is seen by many analysts as a long-term wager. Domestic brokerage agency Anand Rathi a word earlier had suggested buyers to subscribe to the IPO with a long run view. “The Company has delivered good growth in Sales over the past few years along with a stable margin profile. When compared to its listed peers, Hariom Pipe Industries is fairly valued,” they’d mentioned. Hariom Pipe Industries plans to make use of the funds raised for the enlargement of MS Pipe manufacturing capacities and the enlargement of sponge iron furnace capability.
Arihant Capital valued the corporate at an EV/EBITDA of 10.2x based mostly on FY21 EBITDA, on the higher finish of the worth band. The brokerage agency had a ‘Subscribe for Long Term’ ranking on the general public challenge. Further, seeing sturdy potential for income development and scope for additional enchancment in profitability, Ventura Securities too had a ‘Subscribe’ ranking on Hariom Pipe Industries.
During FY19-21, Hariom Pipe Industries’ income grew at a CAGR of 37.9% to Rs 254 crore, EBITDA/ PAT grew at a CAGR of 41.9%/ 37.3% to Rs 34 crore and Rs 15 crore, respectively. Founded in 1962, Hariom Pipe is an built-in producer of MS Pipes, Scaffolding, HR Strips, MS Billets, and Sponge Iron.
Source: www.financialexpress.com”