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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, 2022||Listing on||BSE and NSE|
|Face value||₹10||Total issue size||up to ₹130 crores|
|Price Band||₹144-153||Fresh Equity Issue||up to ₹130 crores|
|Market Lot||98 shares||Promoters||Rupesh Kumar Gupta and Sailesh Gupta are the company promoters.|
|Minimum Investment||₹14,994||Book running lead managers||ITI Capital Limited.|
The offer is broken up into the following investor classes:
- Funding capital expenditure requirements.
- Funding the working capital requirements.
- General corporate purposes.
|IPO open date||30-Mar -2022||Initiation of refunds||11-Apr-2022|
|IPO close date||05-Apr-2022||The credit of shares to the Demat Account||12-Apr-2022|
|Basis of allotment date||08-Apr- 2022||IPO listing date||13-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.
|Particulars||For the year/period ended |
|Profit After Tax||15.13||7.91||8.02|