Hariom list: Should you book profits in Hariom Pipe or keep them for now?

New Delhi: Shares of Hariom Pipe Industries were doing better than expected on the stock exchanges as the meter was listed at Rs 220 on the National Stock Exchange (NSE), a 44% premium to its issue price.

On BSE, the certificate was listed at a 40% premium at Rs 214, only to earn a re-listing. It extended its rise by another 5% to Rs 224.70, bringing the total gain to 47%.

Market experts suggest that after a lackluster and muted IPO season, the company’s listing has exceeded market expectations. The majority of them see more vapor left on the counter. However, they strictly suggest avoiding buying fresh at current prices.

Arafat Saiyed, Senior Research Analysts at Reliance Securities, said the company is backed by strong financials and is looking to expand its capacity from the net proceeds from the sale of the stake.

“The stock is fairly priced at current levels and we are more up in the meter at Rs 300 in the near term,” he added. “Investors can hold their run longer, but new entry should only be made below Rs 200.”

Echoing the same tone, Astha Jain, senior research analyst at Hem Securities, said investors could take partial profits and hold the remaining position for more upside.

Jain sees the meter reaching the target of Rs 275-280 in the near term. “We suggest investors look to buy new positions in the range of Rs 180-200, he added.”

Both Reliance Securities and Hem Securities were bullish on the matter and had suggested an offer for the issue when it was opened for subscription.

The company had raised Rs 130.05 crore via the mainline by selling its shares in the range of Rs 144-153 between March 30 and April 5. The issue consisted entirely of fresh shares.

Overall, the issue was subscribed just under 8 times, thanks to strong bids from individual investors, whose share was subscribed 12.15 times. The HNI portion was subscribed 8.9 times, while the QIB allocation fetched less than twice bids.

Santosh Meena, Head of Research at Swastika Investmart, said the company’s good rating can be attributed to good market sentiment and good outlook for the steel pipe industry.

“The cyclical nature of the industry and the commoditized nature of the commodities make it suitable only for aggressive long-term investors,” he added. Those who requested sign-up gains can maintain a stop loss of Rs 195.”