This is a public announcement for information purposes only and is not a prospectus announcement. This does not constitute an invitation or offer to acquire, purchase or subscribe for securities. Not for release, publication or distribution, directly or indirectly, outside India.
Hariom Pipe Industries Limited’s initial public offering to open on March 30, 2022
- Price Band of ₹ 144 – ₹ 153 per equity share bearing face value of ₹ 10 each (“Equity Shares”).
- Bid/ Issue Opening Date – Wednesday, March 30, 2022 and Bid/ Issue Closing Date – Tuesday, April 5, 2022.
- Minimum Bid Lot is 98 Equity Shares and in multiples of 98 Equity Shares thereafter.
- The Floor Price is 14.4 times of the face value of the Equity Share and the Cap Price is 15.3 times of the face value of the Equity Share.
Risks to Investors: • Majority of the sales of the Company are concentrated in the three (3) southern states of Karnataka, Telangana and Tamilnadu • Average Cost of acquisition of Equity Shares by the Promoters namely, Mr. Rupesh Kumar Gupta and Mr. Sailesh Gupta is ₹ 7.53 and ₹ 11.72, respectively • Details of Acquisition of all Equity Shares transacted in last one year and three years:
|Period||Weighted Average Cost of Acquisition Price (in ₹)||Cap price (₹ 153) is ‘X’ times the Weighted Average Cost of Acquisition||Range of acquisition price: Lowest Price – Highest Price (in ₹)|
|Last 1 year||10.29||14.88||0.00 – 36.00|
|Last 3 years||31.13||4.91||0.00 – 36.00|
• Weighted Average Return on Net Worth for Fiscals 2021, 2020 and 2019 is 19.85%. • The BRLM associated with the Issue has handled 2 public issue in the past three years, out of which 1 issue closed below the issue price on listing date.
Mumbai/Hyderabad, March 28, 2022: Hyderabad-based Hariom Pipe Industries Limited (“Company”) is proposing to open its initial public offering of Equity Shares (the “Issue”) on Wednesday, March 30, 2022 for Subscription and close on Tuesday, April 5, 2022. The price band for the Issue has been determined a ₹ 144 – ₹ 153 per Equity Share. Investors can bid for a minimum of 98 equity shares and in multiples of 98 equity shares thereafter.
The public issue comprises issue of up to 85,00,000 Equity Shares of the Company. The proceeds from the issue worth Rs. 50.05 crore will be used for funding capital expenditure requirements; Rs. 40 crore will be used for funding working capital requirements and remaining for general corporate purpose.
Headquartered in Hyderabad, Telangana, Hariom Pipe Industries Limited manufactures steel products and has a wide distribution network in South India. The Company is an integrated manufacturer of Mild Steel (MS) Billets, Pipes and Tubes, Hot Rolled (HR) Coils Scaffolding and Sponge Iron and caters directly and indirectly to customer requirements in various sectors such as Housing, Infrastructure, Agriculture, Automotive, Solar Power, power, cement, mining and Engineering.
The expansion of furnace will ensure availability of primary raw materials i.e. MS Billets which is used in the production of HR Strips. HR Strips are used as main raw material in its Pipe Mills. The new electric melting furnace will also help in ensuring availability of HR strips for its additional pipe mills. Thus leading to backward integration of its product line. The EBIDTA margin of the Company for Fiscal 2021 is 13.72%. The total income and profit after tax for six months period ended September 30, 2021 stood at Rs. 201.16 crores and Rs. 12.87 Crores respectively.
The company’s credit rating for long term has been upgraded from ‘CRISIL BBB / Stable’ to ‘CRISIL Triple BBB+ Outlook: Stable’ (pronounced Triple B Plus with Stable outlook) by CRISIL in the fiscal 2022.
The Issue is being made through the Book Building Process, in terms of Regulation 6(1) of the SEBI ICDR Regulations, wherein not more than 30% of the Issue shall be available for allocation to Qualified Institutional Buyers, not less than 35% of the Issue shall be available for allocation to Non-Institutional Investors and not less than 35% of the Issue shall be available for allocation to Retail Individual Bidders.
All capitalized terms used herein and not specifically defined shall have the same meaning as ascribed to them in the red herring prospectus dated March 23, 2022 (“RHP”) filed with the Registrar of Companies, Hyderabad (“RoC”).
Disclaimers: HARIOM PIPE INDUSTRIES LIMITED is proposing, subject to receipt of requisite approvals, market conditions and other considerations, to make an initial public offer of its Equity Shares and has filed the RHP with the RoC and thereafter with Securities and Exchange Board of India (“SEBI”) and the Stock Exchanges. The RHP shall be available on the website of the SEBI at www.sebi.gov.in as well as on the website of the book running lead manager, ITI Capital Limited at www.iticapital.in, the website of the National Stock Exchange of India Limited at www.nseindia.com and the website of the BSE Limited at www.bseindia.com, respectively. Any potential investor should note that investment in equity shares involves a high degree of risk and for details relating to such risks, see “Risk Factors” on page 22 of the RHP. Potential investors should not rely on the DRHP for any investment decision.
The Equity Shares have not been and will not be registered under the U. S. Securities Act of 1933 (the “U. S. Securities Act”) or any state securities laws in the United States, and unless so registered, and may not be offered or sold within the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U. S. Securities Act and applicable U. S. state securities laws. Accordingly, the Equity Shares are being offered and sold outside the United States in offshore transactions in reliance on Regulation S and the applicable laws of each jurisdictions where such offers and sales are made. There will be no public offering of the Equity Shares in the United States.
DISCLAIMER CLAUSE OF SEBI: SEBI only gives its observations on the offer documents and this does not constitute approval of either the Issue or the specified securities stated in the Issue Document. The investors are advised to refer to page 290-291 of the RHP for the full text of the Disclaimer Clause of SEBI.
DISCLAIMER CLAUSE OF BSE: It is to be distinctly understood that the permission given by BSE Limited should not in any way be deemed or construed that the RHP has been cleared or approved by BSE Limited nor does it certify the correctness or completeness of any of the contents of the RHP. The investors are advised to refer to the page 292 of the RHP for the full text of the Disclaimer clause of the BSE Limited.
DISCLAIMER CLAUSE OF NSE (The Designated Stock Exchange): It is to be distinctly understood that the permission given by NSE should not in any way be deemed or construed that the Offer Document has been cleared or approved by NSE nor does it certify the correctness or completeness of any of the contents of the Issue Document. The investors are advised to refer to page 292 of the RHP for the full text of the Disclaimer Clause of NSE.
For further details in relation to the Company, BRLM, Compliance Officer of the Company, availability of application forms and RHP, please refer to statutory advertisement dated March 28, 2022.