Hariom Pipe Industries IPO - Subscription Day 3

5paisa Research Team 5paisa Research Team 4th April 2022 - 10:05 pm

The Rs.130.05 crore IPO of Hariom Pipe Industries, consisting entirely of a fresh issue of shares worth of Rs.130.05 crore, saw tepid response on Day-1 and a pick-up in demand on Day-2. However, in between there were a slew of holidays due to the new fiscal year and 04-April was the third day of the IPO.

As per the combined bid details put out by the BSE at the end of Day-3, Hariom Pipe Industries IPO was subscribed 3.44 times overall, with good demand traction seen in the retail segment with reasonable interest from the HNI / NII segment and tepid interest in the QIB segment. The initial public offer (IPO) will close for subscription on Tuesday, 05th April 2022. The IPO is open for 4 days.

As of close of 04th March 2022, out of the 85 lakh shares on offer in the IPO, Hariom Pipe Industries saw bids for 292 lakh shares. This implies an overall subscription of 3.44 times of the issue size.

The granular break-up of subscriptions was dominated by retail investors with relatively better contributions from HNI / NII investors but tepid contribution from QIB investors.

Normally, it is only on the last day of bidding, the NII/HNI bids and the QIB bids build up substantial momentum. We should get a clearer picture by the end of last day of subscription only. The issue of Hariom Pipe Industries will close on 05th April.

Hariom Pipe Industries IPO Subscription Day 3

Category	Subscription Status
Qualified Institutional Buyers (QIB)	0.83 Times
Non Institutional Investors (NII)	1.93 Times
Retail Individuals	7.18 Times
Employees	Not Appliable
Overall	3.44 times

QIB Portion

Being a small sized IPO, there was no anchor placement in the case of Hariom Pipe Industries. Normally, the anchor placement is done with institutional investors and QIBs and the committed portion allotted to anchor investors is then reduced from the institutional QIB quota in the IPO.

The QIB portion (net of anchor allocation if applicable) has a quota of 25.50 lakh shares of which it has got bids for 21.06 lakh shares at the close of Day-3, implying 0.83x or 83% subscription for QIBs at the close of Day-3.

However, QIB bids typically get bunched on the last day, although we have to wait and see how the response mechanism of QIBs build up on the third day of the IPO. It must also be remembered that the QIB allocation is 30% in the IPO while it is 35% for HNI / NIIs and 35% for retail investors.

HNI / NII Portion

The HNI portion got subscribed 1.93 times (getting applications for 57.38 lakh shares against the quota of 29.75 lakh shares). This is a relatively better response at the close of Day-2 from the NII/HNI segment with most of the response coming from HNI individuals.

However, this segment normally sees the maximum response bunched on the last day. Bulk of the funded applications and corporate applications, come in on the last day of the IPO only, so a clearer picture will only emerge on Tuesday 05th April.

Retail Individuals

The retail portion was subscribed a relatively strong 7.18 times at the close of Day-3. For this issue, the retail quota stands at 35% of the issue size. Retail interest is normally seen in the first 2 days, so the eventual interest level looks to be building up reasonably well.

For retail investors; out of the 29.75 lakh shares on offer, valid bids were received for 213.57 lakh shares, which included bids for 174.40 lakh shares at the cut-off price. The IPO is priced in the band of (Rs.130-Rs.137) and will close for subscription on 05th April 2022.

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