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Hariom Pipe IPO subscribed 4x so far



The Rs 130 crore share sale issue of Hariom Pipe has received a decent response from investors during the bidding process.To get more news about solid invest, you can visit wikifx.com official website.

The issue, which kicked off for subscription on March 30, has been subscribed 3.99 times so far, with investors making bids for 3,39,55,726 equity shares against 8,500,000 equity shares on offer, data available with BSE showed. The IPO will close for subscription today.

The portion reserved for retail bidders was subscribed 8.15 times, whereas the HNI quota attracted 2.56 times biddings. The portion for institutional buyers fetched 83 per cent subscription.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.