Small size of operations makes Hariom Pipe offer look pricey
The operating profit before depreciation and amortisation (EBIDTA) was Rs 35 crore while EBIDTA margin was 13.7%. Return on equity for the year was 21%.
Synopsis
The company reported a strong growth over the past two years with double-digit margin and return ratios. However, the issue seems to be aggressively priced considering the small size of operations.
ET Intelligence Group: Hyderabad based Hariom Pipes plans to raise Rs 130 crore through a fresh issue of shares for future capital expenditure, to pay for working capital and for general corporate purposes. After the IPO, the promoter stake will reduce to 66% from 99%. The company reported a strong growth over the past two years with double-digit margin and return ratios. However, the issue seems to be aggressively priced considering the small
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