 "IPO, shares, company, firms, market")
Hariom Pipe Industries has filed draft papers with capital markets regulator Sebi to raise Rs 100-120 crore through an initial public offering.
The Initial Public Offering (IPO) comprises sale of 85 lakh equity shares of the company, according to the Draft Red Herring Prospectus (DRHP) filed with Seb.
Net proceeds from the initial share sale will be used to fund its capital expenditure, working capital requirements and towards expenses for general corporate purposes.
According to market sources, the IPO is expected to fetch Rs 100-120 crore.
Headquartered in Hyderabad, the backward integration-focused company has a strong hold on its steel products with wide distribution network across India.
The third generation entrepreneur-led company has a diverse product portfolio consisting of Mild Steel (MS) billets, Pipes and tubes, Hot Rolled (HR) voils and scaffolding systems. It caters to diverse end use industries such as housing, infrastructure, agriculture, automotive, solar, fabrication and engineering.
All intermediate products required for the manufacturing of its final products are produced in-house.
Hariom Pipe Industries plans to set up a new manufacturing plant in Sangareddy, Telangana with a total estimated installed capacity of 51,943 tonnes per annum. It plans to commence production in FY21 itself, as per the draft papers.
For fiscal 2021, its total income stood at Rs 254.82 crore as against Rs 161.15 crore in the preceding financial year. The company's net profit was at Rs 15.13 crore for fiscal 2021 as compared to Rs 7.90 crore in the previous financial year.
ITI Capital is the sole book-running lead manager to the issue.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
