Hariom Pipe Industries Limited (HPIL) has filed its draft red herring prospectus with the SEBI for its initial public offering to raise Rs 100-120 crore, according to the people aware of the development.
The net proceeds from the fund raise will be used to fund its capital expenditure, working capital requirements besides expenses for general corporate purposes. The equity shares have a face value of Rs 10 each.
Headquartered in Hyderabad and incorporated in 2007 the backward integration focused company has a strong hold on its steel products with wide distribution network across India and especially in South and Western India. The third generation entrepreneur led company has a diverse product portfolio consisting of Mild Steel (MS) Billets, Pipes and Tubes, Hot Rolled (HR) Coils and Scaffolding Systems and caters to diverse end use industries such as Housing, Infrastructure, Agriculture, Automotive, Solar, Fabrication and Engineering.
All intermediate products required for the manufacturing of its final products are produced in-house.
HPIL plans to set up a new manufacturing plant in Sangareddy, Telangana with a total estimated installed capacity of 51,943 tonnes per annum. It plans to commence production in FY21 itself. As on October 2019, across its 6 manufacturing facilities, it has an installed capacity of approximately 2.41 Lakh tonnes per annum.
For fiscal 2021, it's total income stood at Rs 254.82 crore against Rs 161.15 crore a year ago. Net profit stood at Rs 15.13 crore versus Rs 7.90 crore a year ago. EBITDA margin was at 13.72% compared with 14.81% last year.
ITI Capital Limited is the sole book-running lead manager to the issue.