The initial public offering (IPO) of Hariom Pipe kicked off for subscription from today.
The company, which is likely to raise Rs 130.05 crore via its maiden stake sale, is selling 8,500,000 fresh equity shares in the price range of Rs 144-153 apiece.
Hyderabad-based Hariom Pipe manufactures iron and steel products including mild steel (MS) pipes, scaffolding, HR strips, MS billets and sponge iron.
The company sells and markets MS pipes in the western and southern parts of India under the 'Hariom Pipes' brand name through more than 1,400 distributors and dealers.
Majority of the analysts are positive on the issue and have recommended subscribing to it. However, a few of them have a word of caution for investors.
Market participants are bullish on the company's sound business profile and strong fundamentals but say that rich pricing and high competition makes it an aggressive bet for conservative investors.
With an experienced and qualified management and competitive pricing of products, Hariom has the potential to maintain its double-digit growth path, said brokerage firm Reliance Securities.
Citing capacity expansion, extensive distribution network, decent financials,
likely margin improvement from the current level and valuation comfort compared to peers, it gave 'subscribe' rating to the issue.
Looking after the financial performance of the company and valuations, the issue looks decent. Hence we recommend 'Subscribe' on issue," Hem Securities said.
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