Hariom Pipe Industries makes strong market debut, premium rises almost 44%: Should you buy, sell or hold?

Hariom Pipe Industries shares made a spectacular debut on Dalal Street on 13 April, Wednesday, and were listed at a stellar premium while domestic markets soared higher. The iron and steel manufacturer is listed at Rs 214 on the Bombay Stock Exchange, with a premium of 39.87 per cent. Whereas on the National Stock Exchange, the company shares started trading at Rs 220 per share, going up by 43.79 percent over their issue price of Rs 153, according to reports. On its market debut, the IPO of the company had a market capitalisation of Rs 545 crore. The public issue of Hariom Pipe Industries has subscribed a total of 7.93 times with heavy bidding from retail investors, whose quota was subscribed 12.15 times The portion reserved for the non-Institutional Investors (NII) was subscribed 8.87 times and the QIB allocation was booked 1.91 times. Hariom Pipe Industries had acquired Rs 130.05 crore via its public issue as its fresh equity shares were sold in the price range of Rs 144-153 between 30 March-5 April. Stock market experts suggested that allottees can book 50 percent profit investing in the stock for 6 months, with a target of Rs 320 per share and stop loss at Rs 197. Bidders who missed the allotment can buy the shares now at the current level, with a one-month target of Rs 270 and are advised to maintain stop loss at Rs 212 apiece. Many conservative investors have found the bid aggressive because of high pricing and high competition. Hariom Pipe is a Hyderabad-based company that manufactures mild steel pipes, scaffolding, HR strips, MS billets, and sponge iron. Their business is mostly concentrated in western and southern parts of India. The company has two plants, which produces finished steel products from scrap iron and sponge iron in Telangana. The other plant operates at Anantapur in Andhra Pradesh and it manufactures sponge iron. Market investors are quite hopeful about the company’s sound business profile and strong fundamentals.