Multibagger stock rallies 16% to hit record high, up 160% in 8 months since IPO

“We wish to inform you that our Company had entered into Asset Transfer Agreement with R.P.Metal Sections Private Limited on 26th December, 2022 to purchase their operating Asset which manufactures Galvanized Pipe and Cold Roll coil. This unit is spread across 13.83 acres of land and located at SIPCOT Industrial growth centre, Perundurai, Tamilnadu. This purchase is for an all cash consideration of Rs. 55 Crores (Fifty Five Crores only),” the company announced in an exchange filing.

Explaining the object of the transaction, Hariom Pipe said that the company is in the Process of Expanding product range to add more value-added products, and this purchase will help the company in achieving the same.

This purchase of Asset is subject to obtaining certain permissions and approvals for transfer of license(s) from R.P. Metal to Hariom Pipe Industries , it added and the vendor R.P.Metal is required to take NOC/approval from SIPCOT (State Industries Promotion Corporation of Tamil Nadu) to transfer the Lease agreement in the name of Hariom Pipe Industries and all other transfer of Licenses.

The newly listed stock, that made its market debut in April this year, has given multibagger return of more than 160% in eight months, from its IPO issue price of ₹153 apiece. The ₹130-crore initial public offering (IPO) of Hariom Pipe Industries was oversubscribed by nearly 8 times. 

Headquartered in Hyderabad and incorporated in 2007, the company has a diverse product portfolio consisting of Mild Steel (MS) billets, Pipes and tubes, Hot Rolled (HR) voils and scaffolding systems and caters to diverse end-use industries such as housing, infrastructure, agriculture, automotive, solar, fabrication and engineering. For the quarter ending September 2022 (Q2), the company posted a 29% rise in its standalone net profit at ₹9.3 crore as compared to ₹7.2 crore in the same quarter last year.