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Should you be Investing in Hariom Pipe IPO?

Should you be Investing in Hariom Pipe IPO?


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Hariom Pipe Industries Ltd is part of the prestigious Hariom Group and is headquartered in Hyderabad, Telangana. The company is a premium manufacturer of iron and steel products. The company has a prominent presence in South India and is expanding to west India.

The company manufactures a variety of products such as Mild Steel (MS) Pipes, Scaffolding, HR Strips, MS Billets, and Sponge Iron. A variety of end-use industries are served by this company, including housing, infrastructure, agriculture, automotive, solar, fabrication, and engineering.

The company has two units, Mahabubnagar District in Telangana (Unit I), which manufactures steel scrap and finished steel products from Sponge Iron. The Anantapur district in Andhra Pradesh (Unit II) exclusively manufactures Sponge Iron. This is located near Bellary, which is one of the hubs in South India for iron ore production

MS Pipes are primarily sold via more than 200 distributors and contractors are also sold directly through B2B sales. Product specifications such as thickness, length, quality, availability, and customized products are their key differentiator.


IPO open from Mar 30th – Apr 05th, 2022Listing on BSE and NSE
Face value₹10Total issue size up to ₹130 crores
Price Band₹144-153Fresh Equity Issue up to ₹130 crores
Market Lot 98 sharesPromotersRupesh Kumar Gupta and Sailesh Gupta are the company promoters.
Minimum Investment₹14,994Book running lead managers ITI Capital Limited.

What is an IPO and should you invest in them?


The offer is broken up into the following investor classes:


  • Funding capital expenditure requirements.
  • Funding the working capital requirements.
  • General corporate purposes.


IPO open date30-Mar -2022Initiation of refunds11-Apr-2022
IPO close date05-Apr-2022The credit of shares to the Demat Account12-Apr-2022
Basis of allotment date08-Apr- 2022IPO listing date13-Apr-2022


Environment-friendly manufacturing process: In today’s world, environmentally friendly manufacturing is not an option, but a necessity. Following this belief, the company consciously selected and utilized hot charging for manufacturing products in order to significantly reduce the use of coal and electricity.

Competitive edge: The company does customization in thickness, length, and quality of the product. So, the demand for its products is higher than that of its competitors who manufacture and sell standard industry sizes and dimensions of products.

The strategic location of manufacturing units: Unit I at Mahabubnagar District is located approximately 70 kilometers from Hyderabad. Unit II in Anantapur District is around 18 km from Bellary, which is one of the hubs in South India for iron ore production.

Expanding geographical network: As part of its strategy, the company will continue to develop and nurture existing markets and create new distribution channels in non-penetrated regions.


Absence of big-ticket customers: Business operations and financial performance may be adversely affected by the absence of large customers and dependence on smaller customers.

No long-term agreements with customers: due to uncertainty in demand, the company has no way to know if these suppliers and customers will continue to do business with it.

Seasonal in nature: Throughout the steel and steel products industry, demand and pricing are volatile and affected by the cyclical nature of the industries it serves.


ParticularsFor the year/period ended
(in ₹Cr)
Total Revenue254.82161.15133.91
Total Expenses233.63149.83122.23
Profit After Tax15.137.918.02
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