Shares of iron and steel products maker Hariom Pipe Industries hit a fresh all-time high on Wednesday, driven by strong rally in the last three straight sessions. After surging 14% in the past two days, the share price of Hariom Pipe gained as much as 16.6% intraday trade to attain a new peak of ₹403 on the BSE as investors cheered the company’s decision to acquire operating assets of RP Metal Sections. The stock breached its previous high of ₹373.45 touched on December 12, 2022. The smallcap stock has rallied 34% in the past three sessions, in sync with BSE benchmark Sensex, which added 1.9% during the same period.  

The homegrown iron and steel products maker, which made its stock market debut in April this year, has emerged as the best performing IPO of 2022, delivering 163% returns to its shareholders till date, compared to its issue price of ₹153 apiece.

With a market capitalisation of ₹940.5 crore, the Hyderabad-based company has risen 59% on a year-to-date basis, while it jumped 90% in the past six months. In the last one month, the stock has risen 9%, while it added over 12% in a week. The smallcap share hit a 52-week low of ₹169.35 on May 11, 2022.

Hariom Pipe shares got a boost on Wednesday after the company informed exchanges that it has entered into asset transfer agreement with Bangalore-based RP Metal to purchase its operating asset which manufactures galvanised pipe and cold roll coil for ₹55 crore. “This unit is spread across 13.83 acres of land and located at SIPCOT Industrial growth centre, Perundurai, Tamil Nadu,” it said in a BSE filing post market hours on Tuesday.

As per the company, the acquisition will help to expand its product range and add more value-added products. The deal is subject to obtaining certain permissions and approvals for transfer of licenses from RP Metal to Hariom Pipe Industries.

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 raised ₹130 crore from its IPO, which was subscribed 7.93 times on the back of 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.

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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