Hariom Pipe
Mainboard₹130 Cr issue
+39.87%
Listing gain over issue price
Issue size
₹130 Cr
1 lot at cut-off
₹14,994
Lot size
98shares
Open
30 Mar 2022
Close
05 Apr 2022
Allotment
08 Apr 2022
Listing
13 Apr 2022
Listing performance
Issue price
₹153
Listed at
₹214
Listing-day close
₹231
Latest price
₹300.20
Close on 23 Oct 2026
Listing gain
+39.87%
Return since issue
+96.21%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 30 Mar 2022 – 05 Apr 2022
- Listing date
- 13 Apr 2022
- Face value
- ₹10 per share
- Issue price
- ₹153 per share
- Lot size
- 98 shares
- Total issue size
- ₹130 Cr
- Market cap at offer price
- ₹390 Cr
- Promoter holding
- 99.10% → 66.00% pre-issue → post-issue
- ISIN
- INE00EV01017
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- ITI Capital Ltd.
- Registered office
- Plot 3-4-174/12/2, 1st Floor, Samarpan Lane, Besides Spencer’s, Pillar No125, Attapur, Telangana
Reservation and application size
How the issue is split between investor categories, and what each may bid
Application size
Minimum 98 shares per lot, in multiples, at ₹153
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 98 | ₹14,994 |
| Retail (max) | 13 | 1,274 | ₹1,94,922 |
| S-HNI (min) | 14 | 1,372 | ₹2,09,916 |
| S-HNI (max) | 66 | 6,468 | ₹9,89,604 |
| B-HNI (min) | 67 | 6,566 | ₹10,04,598 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Valuation and performance
Valuation at offer price
₹153 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 10.64 | — |
| P/E (×) | 14.38 | — |
| Market cap | — | ₹390 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 21.38%
- ROCE
- 27.41%
- Debt / equity
- 1.13
- PAT margin
- 5.94%
- EBITDA margin
- 13.72%
- NAV per share
- ₹49.79
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Hariom Pipe
Hariom Pipe Industries Limited was incorporated as Hari Om Concast And Steels Private Limited on June 21, 2007, and later converted to a public limited company named Hariom Pipe Industries Limited in January 2018. The company is an integrated steel manufacturer with two manufacturing units: Unit I in Mahabubnagar District, Telangana, and Unit II in Anantapur District, Andhra Pradesh. The company manufactures MS Pipes, Scaffolding, HR Strips, MS Billets, and Sponge Iron, primarily serving the Southern and Western Indian markets through a distribution network of over 200 distributors and dealers. The company follows an integrated manufacturing process converting iron ore into sponge iron, then to billets, HR strips, and finally MS pipes.
Company Analysis
from RHPHariom Pipe Industries Limited is an integrated manufacturer of Mild Steel Pipes, Scaffolding, HR Strips, MS Billets, and Sponge Iron operating in the steel and steel products industry.
Hariom Pipe Industries Limited was incorporated as Hari Om Concast And Steels Private Limited on June 21, 2007, and later converted to a public limited company named Hariom Pipe Industries Limited in January 2018. The company is an integrated steel manufacturer with two manufacturing units: Unit I in Mahabubnagar District, Telangana, and Unit II in Anantapur District, Andhra Pradesh. The company manufactures MS Pipes, Scaffolding, HR Strips, MS Billets, and Sponge Iron, primarily serving the Southern and Western Indian markets through a distribution network of over 200 distributors and dealers. The company follows an integrated manufacturing process converting iron ore into sponge iron, then to billets, HR strips, and finally MS pipes.
steel and steel products
Objects of the Issue
- Funding capital expenditure requirements ₹5,005.03 lakhs p.20
- Funding the working capital requirements of our Company ₹4,000.00 lakhs p.20
- General corporate purposes ₹3,034.97 lakhs p.20
- Funding capital expenditure requirements ₹5,005.03 lakhs p.85
- Funding the working capital requirements of our Company ₹4,000.00 lakhs p.85
- General corporate purposes ₹3,034.97 lakhs p.85
- Expansion of MS Pipe manufacturing capacity by setting up two additional pipe mills adjacent to existing Unit I to increase capacity from 84,000 MTPA to 1,32,000 MTPA p.131
- Expansion of Furnace Unit capacity to enhance production capacity to 1,04,232 MTPA from existing capacity of 95,832 MTPA p.132
- General corporate purposes and working capital requirements p.261
Issue Structure
- Total Issue
- Up to ₹13,005 lakhs
- Fresh Issue
- Up to ₹13,005 lakhs (Up to 85,00,000 Equity Shares)
- Price Band
- ₹144 to ₹153 per Equity Share
- Lot Size
- 98 Equity Shares and in multiples of 98 Equity Shares
- Face Value
- ₹10 per Equity Share
Business Model
The company operates as an integrated manufacturer and generates revenue through the sale of manufactured steel products including MS Pipes, Scaffolding, HR Strips, MS Billets, and Sponge Iron. Products are sold through a network of distributors and dealers with credit terms ranging from 15 to 71 days. The company sources raw materials like iron ore through MSTC bidding portal and local suppliers.
Business Segments
Manufacturing and sale of Mild Steel Pipes and Scaffolding products
Manufacturing of Sponge Iron and Hot Rolled Strips as intermediate products in the integrated manufacturing process
Production of sponge iron as a raw material for steel products
Production of hot-rolled steel strips used as raw material for pipe mills
Manufacture of mild steel pipes and tubes for construction, infrastructure, and industrial applications
Production of mild steel sections for structural applications
Manufacturing of steel scaffolding and tube accessories for construction and temporary structures
Sponge iron is a metallic product produced through direct reduction of iron ore in the solid state. It is a substitute for scrap and is mainly used in making steel through the secondary route.
Raw steel cannot be of use while in its pure form, thus it has to be cast into shape. The freshly made steel, which is still in the form of a metal bar or rectangle, is called billets.
HR Strips refers to pieces of iron or steel that may be forged into long, narrow strips. HR Strips are typically used in the manufacture of various types of goods such as pipes, tubes, and gun barrels.
Primary product is HR (Hot-Rolled) MS pipes. In pipes the Company manufactures square, rectangular, circular and D-shaped sections. The Company manufactures HR pipes up-to a maximum size of 250x250mm for square sections, 300x200mm for rectangular sections and 300mm NB (nominal bore) for circular sections.
Scaffolding is used in construction activity, both buildings and other infrastructure construction. Scaffolding is used for variety of purposes including ease of construction process and safety of workers. The range includes Telescopic Props, Cuplock Horizontal/Ledgers, H Frame System, Cross Bracings, and various other accessories.
Manufacturing and sale of Mild Steel pipes and tubes in more than 150 different specifications
Manufacturing and sale of scaffolding products and related accessories and fittings
Manufacturing of sponge iron at Unit II near Bellary, Andhra Pradesh; primarily for captive consumption with excess production sold in market
Manufacturing of MS billets and HR strips; primarily for captive consumption in manufacturing MS pipes with excess production sold in market
Value-added manufacturing product; primary revenue driver in recent periods representing over 90% of sales as of September 30, 2021
Sale of steel tubes and related manufacturing products
SWOT Analysis
Strengths
- • Integrated manufacturing from raw materials to finished products(p.20)
- • Long-standing customer relationships(p.25)
- • Strong brand recognition in Southern and Western India(p.29)
- • Well-established distribution network(p.33)
- • Short production cycle reduces raw material price risk(p.26)
- • Integrated backward-forward supply chain with sponge iron to finished products(p.128)
- • Strong brand recognition and recall in South and Western India(p.128)
- • Diversified product portfolio across multiple steel product categories(p.128)
- • Wide geographic distribution network across seven states(p.128)
- • Exposure to diverse end-use industries reducing customer concentration(p.128)
- • Integrated manufacturing process from iron ore to finished products reduces costs(p.129)
- • Backward integration via Unit II acquisition reduces raw material dependence(p.129)
- • Environmental-friendly manufacturing via hot charging process(p.130)
- • Strategic geographic location near raw materials and markets(p.130)
- • Cost advantage through synchronized hot charging process(p.131)
- • Flexible manufacturing with 150+ product variations(p.129)
- • Experienced promoter management with decade+ industry experience(p.129)
- • Integrated manufacturing with backward integration into sponge iron production(p.250)
- • Diversified product portfolio serving multiple end-use sectors(p.250)
- • Strategic location of sponge iron unit near major iron ore production hub(p.250)
- • Improved operational efficiency through vertical integration(p.250)
- • Growing revenue from manufacturing operations(p.259)
- • Significant profitability improvement(p.260)
- • Strong EBITDA growth trajectory(p.258)
- • Improving operational efficiency with cost per unit reduction(p.260)
- • Strategic shift to value-added products(p.263)
Weaknesses
- • High dependence on top 10 customers(p.26)
- • Heavy reliance on top 10 suppliers for raw materials(p.25)
- • Negative cash flows from operations in recent periods(p.28)
- • High proportion of raw material costs to total expenses(p.26)
- • No long-term agreements with customers or suppliers(p.25)
- • Geographic concentration in Telangana and Andhra Pradesh(p.28)
- • Underutilization of installed capacity(p.37)
- • Environmental compliance violations(p.30)
- • Very low cash position relative to total assets(p.52)
- • High inventory levels consuming significant working capital(p.52)
- • Negative operating cash flow in recent periods(p.56)
- • High current borrowings relative to operations(p.52)
- • Concentrated promoter ownership limiting public float(p.80)
- • Low capacity utilization of pipe mill below 35% for last three fiscal years(p.143)
- • Low capacity utilization of furnace at 37.28% annualized(p.144)
- • Significant financial indebtedness with guarantees from promoters(p.168)
- • Dependence on limited distributor network for sales(p.129)
- • High dependence on top 10 customers for majority of revenue(p.251)
- • Single largest customer concentration risk(p.251)
- • High raw material cost as percentage of total income(p.252)
- • Sub-optimal capacity utilization levels(p.254)
- • High dependence on few customers(p.267)
- • High dependence on few suppliers(p.267)
- • Significant related-party supplier concentration(p.265)
- • Substantial outstanding financial obligations(p.268)
- • Material outstanding litigation involving promoter(p.273)
- • Contingent liabilities and tax disputes(p.264)
- • Low cash and cash equivalents position(p.261)
Opportunities
- • Capacity expansion plans to increase production capacity(p.27)
- • Expansion of furnace unit capacity(p.27)
- • Planned working capital investment to support growth(p.20)
- • Development of value-added products(p.27)
- • Significant growth in Indian steel pipe market driven by infrastructure expansion(p.122)
- • Rising demand from construction and infrastructure sectors in India(p.114)
- • Strong Southern India regional market growth with Telangana as hub(p.122)
- • Capacity expansion to capture market share in growing end-use sectors(p.87)
- • Government focus on infrastructure and manufacturing through Make in India(p.126)
- • Geographic expansion into under-penetrated markets in Western India(p.131)
- • Capacity expansion targeting 1.32 MTPA pipe production(p.131)
- • Furnace capacity enhancement to 1,04,232 MTPA(p.132)
- • Development of value-added products with higher margins(p.132)
- • Forward integration opportunities for end-to-end manufacturing(p.132)
- • Growth in demand across diverse industrial sectors(p.129)
- • Expansion of backward integration to reduce raw material costs and improve margins(p.252)
- • Growth in Indian construction and infrastructure sectors(p.250)
- • Phased capacity expansion to improve market penetration(p.254)
- • Strengthening competitive position through cost advantages from backward integration(p.252)
- • Expansion into value-added product market(p.263)
- • Extended credit terms enabling dealer reach(p.263)
- • Improved cash flow from financing(p.263)
Threats
- • Volatile steel prices and cyclical industry demand(p.27)
- • Volatility in raw material and energy prices(p.27)
- • Seasonal demand fluctuations due to monsoon(p.29)
- • Risk of disruption in third-party mining operations affecting raw material availability(p.29)
- • Intense competition from domestic and global competitors(p.33)
- • Dependence on third-party transportation providers(p.37)
- • Power supply interruption risks(p.37)
- • COVID-19 pandemic impact on operations(p.39)
- • Regulatory and policy changes(p.44)
- • Highly fragmented market with 65% held by others and low company concentration(p.125)
- • Intense competition from established larger players with stronger financial positions(p.128)
- • Fluctuating raw material prices impacting margins(p.126)
- • Threat from alternative materials in pipe and tube applications(p.126)
- • Cyclicality and volatility in steel industry linked to economic conditions(p.49)
- • Exposure to input price volatility, particularly iron ore(p.129)
- • Intense competition from domestic players in fragmented steel industry(p.140)
- • Dependence on Government environmental and pollution clearances(p.144)
- • Risk of equipment failure and manufacturing hazards(p.146)
- • Insurance coverage may not be adequate for all material hazards(p.146)
- • Volatility in raw material availability and pricing(p.252)
- • Intense competition from larger players with greater resources(p.254)
- • Macro-economic slowdown affecting demand in end-use sectors(p.251)
- • Regulatory and compliance risks affecting operations(p.253)
- • Industry seasonality impacting sales(p.267)
- • COVID-19 pandemic disruption and uncertainty(p.266)
- • Raw material price and availability risk(p.265)
- • Negative cash flow from operations in recent periods(p.261)
- • Potential breach of financial covenants(p.263)
- • Pending electricity regulation litigation(p.270)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Rupesh Kumar Gupta | Promoter | 24.70% | — |
| Sailesh Gupta | Promoter | 17.30% | — |
| Rupesh Kumar Gupta | Promoter | 24.70% | 16.46% |
| Sailesh Gupta | Promoter | 17.30% | 11.53% |
| Rupesh Kumar Gupta | Promoter | 24.70% | — |
| Sailesh Gupta | Promoter | 17.30% | — |
| Rupesh Kumar Gupta | Promoter | 24.70% | — |
| Sailesh Gupta | Promoter | 17.30% | — |
| Rupesh Kumar./Shailesh Kumar./Rakesh Kumar Gupta | Promoter Group | 13.74% | — |
| Ansh Commerce Private Limited | Promoter | 11.67% | — |
| Rakesh Kumar Gupta | Promoter | 9.66% | — |
| Sailesh Gupta | Promoter and Director | — | — |
| Rupesh Kumar Gupta | Promoter and Director | — | — |
| Sunita Gupta | Promoter and Director | — | — |
Leadership
Pramod Kumar Kapoor · Chairman
Rupesh Kumar Gupta · Managing Director
Chirag Partani · Company Secretary and Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Hariom Pipe IPO FAQs
What is the lot size of Hariom Pipe IPO?
The minimum lot size of Hariom Pipe IPO is 98 shares. One lot costs ₹14,994 at the cut-off price.
When does Hariom Pipe IPO open and close?
Hariom Pipe IPO opened for subscription on 30 Mar 2022 and closed on 05 Apr 2022.
What is the listing date of Hariom Pipe IPO?
Hariom Pipe IPO listed on 13 Apr 2022.