Hi-Tech Pipes Okays QIP At A Floor Price of Rs 194.98 Per Share For The Issue

Tuesday, October 8, 2024 saw a 2.55 per cent upsurge in the share price of pipe manufacturer Hi-Tech Pipes, which reached an intraday high of Rs 203 after the company announced that it had launched its qualified institutional placement (QIP), with a floor price of Rs 194.98 per share, as approved by its board and shareholders.

"The Fund Raising Committee has approved the floor price for the Issue, being Rs 194.98 per Equity Share ("Floor Price"), based on the pricing formula as prescribed under Regulation 176 of the SEBI ICDR Regulations," the company said in a regulatory filing.

"We further wish to inform you that the 'relevant date' for the purpose of the Issue, in terms of Regulation 171(b)(i) of the SEBI ICDR Regulations, is October 07, 2024, and accordingly the Floor Price in respect of the aforesaid Issue, being Rs 194.98 per Equity Share, has been determined based on the pricing formula as prescribed under Regulation 176(1) of the SEBI ICDR Regulations," Hi-Tech Pipes said in a stock exchange filing.

"Pursuant to Regulation 176(1) of the SEBI ICDR Regulations and in accordance with the approval of the shareholders of the Company accorded through a special resolution passed in the fortieth AGM held on September 21, 2024, the Company may at its discretion offer a discount of not more than 5% on the floor price for the Issue. The Issue price will be determined by the Company in consultation with the Book Running Lead Manager appointed in relation to the Issue. In relation to the qualified institutions placement, we will file the preliminary placement document with your office in due course," Hi-Tech Pipes informed stock exchanges on Tuesday.

The BSE values the company's market capitalisation at Rs 3,507.25 crore. The company's shares, which have been included in the BSE SmallCap index, have increased by more than 200 per cent during the past two years. Based on statistics obtainable from the BSE, the shares have had a 71.95 per cent boost in value so far in 2024. The stock went from Rs 84.80 to the current market price of Rs 199.45, generating a multibagger return of 135.20% in 1 year.

Prominent Indian manufacturer of steel tubes and pipes, Hi-Tech Pipes Limited, is happy to report strong sales volume figures for the second quarter and first half of the fiscal year 2025, which ends on September 30, 2024. For the second quarter of FY25, the firm recorded sales volumes of 123,027 MT, which translates into an impressive 22.50% YoY boost. For the first half of FY25, sales volumes climbed to 245,182 MT, representing an excellent 32.55% YoY growth.

Hi-Tech Pipes is one of the top steel processing companies in India, offering top-notch, cutting-edge products for almost 40 years. Its product line includes GP/GC Sheets, Solar Torque Tubes, Hollow Sections, Steel Pipes, Cold Rolled Coils & Strips, Road Crash Barriers, Solar Mounting Structures, and a variety of other galvanised products. With a total installed capacity of 7,50,000 MTPA, the company operates six (6) cutting-edge integrated manufacturing facilities in Sikandrabad (UP), Sanand (Gujarat), Hindupur (AP) - close to Bangalore, and Khopoli (Maharashtra). The company is on track to reach one million tonnes of capacity in FY25.