iStockNew Delhi: The Rs 130 crore share sale issue of Hariom Pipe received 90 per cent bids so far on the second day of the IPO process on Thursday.
The issue kicked off for subscription on Wednesday, March 30 and will be open till Tuesday, April 5. The company is selling 8,500,000 fresh equity shares in the price range of Rs 144-153 apiece.
According to the data from BSE, the issue received bids for 76,93,000 equity shares or 90 per cent as of 11.30 am of Day 2. Retail portion was booked 2.54 times, whereas the HNI quota was subscribed only 5 per cent. The QIB portion did not receive any bids yet.
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 Pipe' brand name through more than 1,400 distributors and dealers.
The 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 due to aggressive valuations and higher competition in the market.
The company with its integrated nature of the operations has an environmentally friendly manufacturing process with the strategic location of manufacturing units and competitive pricing of the products, said Hem Securities with a subscribe rating.
"We assign 'Subscribe (With Caution)' rating to this IPO as the company’s backward integration of production process provides a cost advantage over its competitors and is available at reasonable valuation as compared to its peers," Choice Broking said.
The issue kicked off for subscription on Wednesday, March 30 and will be open till Tuesday, April 5. The company is selling 8,500,000 fresh equity shares in the price range of Rs 144-153 apiece.
According to the data from BSE, the issue received bids for 76,93,000 equity shares or 90 per cent as of 11.30 am of Day 2. Retail portion was booked 2.54 times, whereas the HNI quota was subscribed only 5 per cent. The QIB portion did not receive any bids yet.
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 Pipe' brand name through more than 1,400 distributors and dealers.
The 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 due to aggressive valuations and higher competition in the market.
The company with its integrated nature of the operations has an environmentally friendly manufacturing process with the strategic location of manufacturing units and competitive pricing of the products, said Hem Securities with a subscribe rating.
"We assign 'Subscribe (With Caution)' rating to this IPO as the company’s backward integration of production process provides a cost advantage over its competitors and is available at reasonable valuation as compared to its peers," Choice Broking said.
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