Hariom Pipe stock breaks 3-day winning streak today, but up 140% over IPO price

On NSE, Hariom Pipe is trading at ₹358.80 apiece down by 2.25% at around 2.54 pm. Overall, the stock has slumped by 3.3% with an intraday low of ₹355 apiece in the day. The stock did touch an intraday high of ₹374.80 apiece, however, gave up its gains as investors turned bearish.

On Wednesday, the stock closed at ₹367.05 apiece up by 7.03%.

In its 3-day rally from December 26th to 28th, the stock had gained by a whopping 22% on NSE before correcting on December 29th. Last week, on Friday, the stock was near ₹300.95 apiece on NSE.

As per the NSE data, on December 28th, in a bulk deal, Graviton Research Capital bought 3,07,773 equity shares at ₹380.04 apiece in Hariom Pipe, however, it also sold similar 3,07,773 equity shares at ₹380.59 apiece.

Further, the data revealed that Mathisys Advisors LLP also purchased 1,33,804 equity shares at ₹382.26 apiece in the bulk deal in Hariom Pipe, however, also sold 1,36,691 equity shares at ₹382.74 apiece. QE Securities bought 1,75,687 equity shares at ₹381.87 apiece and also sold 1,70,661 equity shares at ₹381.99 apiece in the company.

France-based Societe Generale also participated in the bulk deal by selling 1,50,000 equity shares in Hariom Pipe at ₹375.48 apiece. Also, XTX Markets LLP purchased 2,53,436 equity shares at ₹380.58 apiece and sold 2,51,867 equity shares at ₹380.70 apiece in the company.

On December 26th, Hariom Pipe signed an asset transfer agreement with R.P.Metal Sections where the company will purchase the latter’s operating Asset which manufactures Galvanized Pipe and Cold Roll coil for ₹55 crore. This unit is spread across 13.83 acres of land and is located at SIPCOT Industrial growth centre, Perundurai, Tamilnadu.

In its filing, on the deal with R.P.Metal, Hariom Pipe said that they are in the process of expanding its product range to add more value-added products, and this purchase will help the company in achieving the same.

Also, earlier this month, for its growth and expansion plans, Hariom Pipe’s board accepted a credit facility to the tune of ₹197.43 crore from HDFC Bank.

In the first half of FY23, the company posted a net profit of ₹18.91 crore versus ₹12.87 crore in H1FY22. While its EBITDA climbed to ₹32.57 crore versus ₹25.86 crore in H1FY22. Revenue from operations stood at ₹269.36 crore in H1FY23 against ₹200.87 crore in H1FY22.

During the second quarter, the company’s PAT and EBITDA stood at ₹9.27 crore and ₹16.23 crore versus ₹9.54 crore and ₹16.34 crore in Q2FY22. However, revenue from operations jumped to ₹127.05 crore in Q2FY23 against ₹114.05 crore in Q2 of FY22.

In its financial audit report last month, Hariom Pipe revealed that the company is in the midst of implementing the CAPEX plans for expanding the pipe mill capacities as set out in the prospectus of its maiden IPO. Furthermore, the company has obtained sanction from Canara Bank to the tune of ₹94.02 crore which will be utilized to set up a modern cold-rolled steel mill and a galvanized pipe manufacturing plant. The company is confident that the complete benefits of all these expansions and CAPEX would be visible starting FY’23-24.

Also, the company aims to grow both horizontally and vertically in terms of geography, product basket expansion, value-added products, and a quick turnaround time in its supply chain and meeting its customers’ demand.

Hariom Pipe launched its IPO from March 30 to April 5th, 2022. The IPO had a price band of ₹144 – 153 per share and had fully subscribed by 7.93 times with strong demand from retail investors and non-institutional investors.

The company made its market debut on April 13 at ₹220 apiece on NSE which was at a premium of 43.79% from its IPO’s upper price band of ₹153 apiece. Since listing, Hariom Pipe has also touched a 52-week high and low of ₹403.55 apiece and ₹169.10 apiece.

Taking into consideration Wednesday’s closing price, Hariom Pipe stock has zoomed by nearly 67% from its listing price on NSE, and skyrocketed by a breathtaking nearly 140% from its IPO issue price. Hariom Pipe is among the top three best-performing IPOs in 2022 along with Adani Wilmar and Venus Pipes & Tubes.

Additionally, from its 1-year low of ₹169.10 apiece, the stock has gained by over 117% on NSE.