Hariom is an integrated manufacturer of Mild Steel (MS) Pipes, Scaffolding, HR Strips, MS Billets, and Sponge Iron. They use iron ore to produce Sponge Iron which is then processed across various stages to manufacture their final products viz. MS Pipes and Scaffolding making their manufacturing process cost-effective.
They cater to the southern and western Indian markets for their products. Their MS Pipes are marketed and sold in these geographies under the brand name “Hariom Pipes”. A substantial portion of the Sponge Iron, MS Billets, and HR Strips produced by them is used for captive consumption in the manufacturing of MS Pipes and Scaffolding.
They manufacture MS Pipes and Scaffoldings of more than one hundred fifty (150) different specifications and cater, directly and indirectly, to customer requirements in various sectors such as housing, infrastructure, agriculture, automotive, power, cement, mining, solar power, and engineering.
Their integrated plant at Mahabubnagar District in Telangana (Unit I) manufactures finished steel products from iron scrap and Sponge Iron and their other plant at Anantapur District, Andhra Pradesh (Unit II) exclusively manufactures Sponge Iron. Unit II is located near Bellary, which is one of the hubs in South India for iron ore production. The iron ore required to produce Sponge Iron at Unit II is mostly procured through the online bidding process.
Most of the Sponge Iron produced at Unit II is transported to Unit I and used as a raw material for manufacturing MS Billets, HR Strips, MS Pipes, and Scaffolding. The manufacturing of Sponge Iron at their Unit II has reduced their dependence on external sources for raw materials since its acquisition in September 2020.
The integration of Unit I and II have optimized their operations and profitability through backward integration which helps with efficient logistics, inventory management, procurement, energy savings, and quality control. Their quality control team led by qualified chemists and engineers ensures that their raw materials, as well as end products, are tested on all quality parameters to ensure that they are compliant with the required market standards.
Competitive Strengths
- Experienced & Qualified Team
- Complimentary product mix
- Expected High Operating Efficiency
- Location of the Manufacturing Unit
- Product diversification & Wide Product Offering
Hariom Pipe Industries IPO – Business Strategy
- Expand their geographical network.
- Organic growth by expansion of their manufacturing capacity.
- Upgrading their existing manufacturing facilities.
- Expanding their product range to add more value-added products.
- Increasing Operational efficiency
Company Promoters
- Rupesh Kumar Gupta
- Sailesh Gupta
Company Financials
| Amount (in INR & Lakh) | |||
| 31-Mar-21 | 31-Mar-20 | Mar-19 | |
| Total Assets | 17,374.03 | 13,967.72 | 10,335.11 |
| *Total Revenue | 25,482.31 | 16,115.05 | 13,391.56 |
| Total Expense | 23,362.57 | 14,982.58 | 12,226.77 |
| Profit After Tax | 1,513.20 | 790.83 | 802.00 |
Object Of The Issue
- To fund its capital expenditure
- Working capital requirements
- Towards expenses for general corporate purposes
Hariom Pipe IPO Peer Comparison
| S. No. | Company Name | PE |
| 1 | APL Apollo Tubes Ltd | 76.68 |
| 2 | Hi-Tech Pipes Ltd | 44.73 |
| 3 | Rama Steel Tubes Ltd | 79.01 |
| 4 | JTL Infra Ltd | 45.34 |
Hariom Pipe IPO Risk
- There are outstanding legal proceedings involving the company, promoters and certain directors
- Absence of large customers and dependence on smaller customers increases uncertainty of demand
- Any increase in prices and any decrease in the supply would have a material effect
- The demand and pricing in the steel and steel products industry is volatile and is sensitive to the cyclical nature of the industries it serves
- The steel and steel products industry is characterized by volatility in the prices of raw materials and energy
- Payment delay or default in payments or deficiency in services, by any of the channel partners
Hariom Pipe IPO Strengths
- Integrated nature of the operations
- Environment friendly manufacturing process
- Strategic location of manufacturing Units
- Cost advantage in manufacturing the products
- Competitive pricing of the products
Hariom Pipe IPO – Details
| IPO Opening Date | 30 March 2022 |
| IPO Closing Date | 05 April 2022 |
| Issue Type | Book Built Issue IPO |
| Issue Size | ₹130 Crore |
| Face Value | ₹10 per equity share |
| IPO Price | ₹144 To ₹153 Per Equity Share |
| Market Lot | 98 Shares ( 1 Lot) |
| Min Order | 98 Shares |
| Listing At | BSE, NSE |
| Register | BIGSHARE SERVICES PRIVATE LIMITED |
| QIB Shares Offered | Not more than 30% |
| Retail Shares Offered | Not less than 35% |
| NII (HNI) Shares Offered | Not less than 35% |
Hariom Pipe IPO – Date Schedule
| IPO Open Date | 30 March 2022 |
| IPO Close Date | 05 April 2022 |
| Basis of Allotment Date | 08 April 2022 |
| Initiation of Refunds | 11 April 2022 |
| Credit of Shares to Demat Account | 12 April 2022 |
| IPO Listing Date | 13 April 2022 |
Hariom Pipe IPO – Lots Size & Price
| Application | Lots | Shares | Amount ( Cut-Off) |
| Minimum | 1 | 98 | 14,994 |
| Maximum | 13 | 1274 | 1,94,922 |
Promoter Holding
| Pre Issue Share Holding | 42.00% |
| Post Issue Share Holding |
Hariom Pipe IPO Prospectus
Company Contact Information
| Hariom Pipe Industries Limited Plot 3-4-174/12/2, 1st Floor, Samarpan lane beside Spencer’s Pillar No. 125, Attapur, Hyderabad, Telangana – 500 048 Phone No: +91- 40 – 2401 6101 Email: info@hariompipes.com Website: https://www.hariompipes.com/ |
Hariom Pipe IPO Registrar
| BIGSHARE SERVICES PRIVATE LIMITED 1st Floor, Bharat Tin Works Building, Opp. Vasant Oasis Makwana Road, Marol, Andheri East, Mumbai – 400 059 Tel. No.: +91 22 6263 8200 Email:ipo@bigshareonline.com Website: https://www.bigshareonline.com/ SEBI Registration No.: INR000001385 |
Hariom Pipe IPO Lead Manager(s)
| 1. ITI Capital Limited |
Hariom Pipe IPO FAQs
| When Hariom Pipe IPO will open? The Hariom Pipe IPO dates are 30 March 2022 To 05 April 2022. |
| What is the lot size of Hariom Pipe IPO? Hariom Pipe IPO lot size is 98 Shares and total amount is ₹14,994. |
| How to apply for Hariom Pipe IPO? You can apply in Hariom Pipe IPO online using either UPI or ASBA as payment method. ASBA IPO application is available in the net banking of your bank account. UPI IPO application is offered by brokers who don’t offer banking services. |
| When is Hariom Pipe IPO listing date? The Hariom Pipe IPO listing date is announced. The date of Hariom Pipe IPO listing is [13 April 2022]. |
