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Hariom Pipe made investors happy, Rs 153 share got listed at Rs 214, investors got 40% return, what to do now?

The share of Hariom Pipe was listed at a price of Rs 214. Whereas the issue price was Rs 153. That is, this IPO has given 40 percent return to the investors on listing.

Hariom Pipe IPO Listing Today: Hyderabad based company Hariom Pipe Industries has got a better entry in the market. The shares of the company were listed at a price of Rs 214. Whereas the issue price was Rs 153. That is, this IPO has given 40 percent return to the investors on listing. The issue received a good response from investors and was subscribed almost 8 times overall. The size of the issue was Rs 130 crore and it was open for subscription from 30 March to 5 April. Experts said that in this issue, only those investors should bet for a long period, who have a long-term outlook.

Better valuations, stronger fundamentals

According to Ayush Agarwal, Senior Analyst, Swastika Investmart Ltd, Hariom Pipe Industries has a strong distribution network. The company also has a strong brand recall, integrated plan and a strong team of promoters. Between 31 March 2019 to 31 March 2021, the company’s revenue has increased from Rs 133.59 crore to Rs 254.13 crore. The company’s PAT has increased from 8.02 crores to 15.13 crores during the same period. The valuation is also reasonable as compared to the listed piers. The fundamentals of the company are good and the product portfolio is strong. Although there is volatility in the operating cash flow, the debt equity ratio is high and the issue size is small. He says that this issue is suitable only for those investors who are aggressive and have a long-term outlook.

About the IPO

The size of the IPO of Hariom Pipe Industries was Rs 130 crore. There was a fresh issue of 85 lakh shares in this. The funds raised from the IPO will be used to expand the business of the company and meet the working capital requirements. The price band for the issue was Rs 144-153 per share and the lot size was 98 shares. Investors were required to invest at least Rs 14994.

about the company

The company plans to set up a production unit at Sangareddy in Telangana with a capacity of 51,943 tonnes per annum. The company is planning to increase its mild steel pipe manufacturing capacity from 84,000 million tonnes to 1,32,000 million tonnes. For this the company will set up 2 pipe mills and for this the company will increase the capacity of its furnace from 95,832 to 1,04,232 mtpa.

(Disclaimer: IPO advice is given by experts. These are not the personal views of digitnews.in. Markets are subject to risk, so take expert opinion before investing.)

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