Hariom Pipe Industries IPO subscribed 0.67 times on the first day; retail investors booked 1.88 times

The Rs 130.05-crore initial public offering of Hyderabad-based Hariom Pipe Industries was subscribed 0.67 times on Wednesday, March 30, 2022, the first day of bidding. The public issue has received bids for 56,67,536 equity shares against an IPO size of 85,00,000 equity shares.

The portion reserved for retail individual investors (RIIs) was subscribed 1.88 times (bids for 55,86,392 equity shares were made as 29,75,000 shares on offer). The Non-Institutional Investors (NIIs) portion was subscribed 0.03 times.

The price band for the 85 lakhs share issue has been fixed at Rs 144-153 per share. The offer will close on April 5, 2022.

Investors can bid for a minimum of 98 shares and in multiples of 98 shares thereafter. The minimum investment by a retail investor is Rs 14,994 for a single lot of 98 shares and the maximum investment is Rs 1,94,922 for 13 lots (1,274 shares).

The net proceeds from the offer will be used to fund capital expenditure (Rs 50.05 crore) (Rs 40 crore) and working capital requirements.

Allotment will be on April 8, 2022, and initiation of refunds on April 11, 2022, and the issue will be listed on April 13, 2022. ITI Capital Limited is the Book Running Lead Manager of the public issue while Bigshare Services Private Limited is the registrar.

Hyderabad-based Hariom Pipe is an integrated manufacturer of Mild Steel (MS) Pipes, Scaffolding, HR Strips, MS Billets, and Sponge Iron. It uses iron ore to produce Sponge Iron which is then processed across various stages to manufacture our final products viz. MS Pipes and Scaffolding makes our manufacturing process cost-effective.