Homegrown iron and steel products maker Hariom Pipe Industries made a strong debut in the domestic bourses today after garnering a decent response for its initial public offering (IPO). The stock of the Hyderabad-based company listed at a 39.87% premium at ₹214 apiece on the BSE, against the upper band of the issue price of ₹153 per share. On the National Stock Exchange (NSE), the stock opened at ₹220, clocking a listing gain of 43.79%.

Post listing, Hariom Pipe shares surged as much as 46% to hit a high of ₹224.70, while it touched a low of ₹214 on the BSE. There was a spurt in volume trade as 3.4 lakh shares worth ₹7.5 crore changed hands over the counter. The market capitalisation of the smallcap stock surged to ₹568.12 crore. In comparison, the BSE benchmark Sensex was trading at 58,614, up 38 points.

The ₹130-crore IPO of Hariom Pipe Industries was subscribed 7.93 times, driven by strong support from retail investors. The offer received bids for 6.74 crore shares against 85 lakh on offer, while the portion set aside for retail investors was subscribed 12.15 times. The quota for non-institutional investors was subscribed 8.87 times, while the segment for qualified institutional buyers received 1.91 times bid.

Established in 2007, the Hyderabad-headquartered company manufactures steel products and has a wide distribution network across India and especially in the southern and western regions. The company caters to diverse end-use industries such as housing, infrastructure, agriculture, automotive, solar, fabrication and engineering. It offers a wide range of product portfolios consisting of mild steel (MS) billets, pipes and tubes, hot rolled (HR) voils, and scaffolding systems.

The company intends to use IPO proceeds to fund its capital expenditure, working capital requirements, besides expenses for general corporate purposes. It plans to set up a new manufacturing plant at Sangareddy in Telangana, with a total estimated installed capacity of 51,943 tonnes per annum.

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