Pipes manufacturer Hariom Pipes Industries made a strong listing on the exchanges with its share prices witnessing nearly 50 listing gains on Wednesday.
At 2.13 p.m., the shares of the company traded 51 per cent higher at Rs 231 on the National Stock Exchange (NSE), against its issue price of Rs 153.
Reportedly, the firm’s initial public offering issues were subscribed 7.93 times and it saw strong response from the retail investors.
Hariom Pipes Industries proposes to utilise the net proceeds from the IPO towards funding capital expenditure requirements, working capital needs.
“The company’s good listing can be attributed to good market sentiments and good prospects for the Steel Pipes industry. The company has an integrated nature of operations, a cost-effective process and an experienced management team, however, the cyclical nature of the industry, and commoditised nature of products make it suitable only for the aggressive investors in the long term,” said Santosh Meena, Head of Research, Swastika Investmart.
Meena recommended the investors to put a “stop loss” at Rs 195.
Part of Hariom Group founded in 1962, it supplies mild steel billets, pipes and tubes, hot rolled coils and scaffolding systems to a variety of industrial applications across multiple sectors.