Hi-Tech Pipes launches QIP worth ₹600 cr; stock gains 2%

Shares of steel pipes maker Hi-Tech Pipes climbed over 2% in intraday trade on Tuesday after it launched a qualified institutional placement (QIP) worth ₹600 crore. The pipe manufacturer has set the floor price at ₹194.98 per share, a discount of 1.5% over Monday’s closing level of ₹197.95 apiece.

Extending the gaining streak for the third straight session, Hi-Tech Pipes shares rose as much as 2.5% to hit an intraday high of ₹203 on the BSE. The stock was seen inching close to its 52-week high of ₹210.75 touched on September 23, 2024, while it has risen nearly 150% against its 52-week low of ₹82 touched on October 9, 2023.

At the time of reporting, shares of Hi-Tech Pipes were trading at ₹199.85, up 0.96%, with a market capitalisation of ₹3,520 crore. The smallcap stock has given 135% returns in the last one year; 45% in six months; and 72% in the calendar year 2024. In the past one month, the counter has gained over 4%.

In an overnight filing, Hi-Tech Pipes informed exchanges that its fund raising committee at its meeting held on October 7 authorised the opening of the QIP issue at the floor price of ₹194.98 per equity share.

“The Fund Raising Committee has approved the floor price for the Issue, being ₹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 the filing.

The proposal was already approved by the board of directors of the company on August 19, 2024, and the special resolution passed by the shareholders’ of the Company in the fortieth Annual General Meeting held on September 21, 2024.

Last week, Hi-Tech Pipes released its sales figures, posting impressive sales volume for the second quarter and first half of the fiscal year 2025, ending September 30, 2024. The company reported “highest-ever” sales volumes of 123,027 metric tonnes (MT) for Q2 FY25, registering 22.50% year-on-year (YoY) growth. For the first half of FY25, sales volumes reached to 2.45 lakh MT, an outstanding surge of 32.55% over the same period last year.

As per the company, the sales growth was primarily driven by a surge in demand across key sectors, including infrastructure, water transportation, and solar energy. “Despite the challenges posed by the monsoon season, Hi-Tech has successfully capitalised on opportunities arising from increased government spending in critical Infrastructure projects and Private Investment in renewable energy projects.”

"We are proud to report these significant growth figures, which highlight our strong market position and our ability to meet the needs of our customers in vital sectors. The robust demand for steel pipes in infrastructure, water transportation and renewable energy, coupled with our strategic initiatives, has enabled us to achieve these figures,” says Ajay Kumar Bansal, Chairman, Hi-Tech Pipes.

Going ahead, Bansal remains optimistic about continued growth, especially with the festive season on the horizon. “We anticipate an uptick in demand during this time, alongside ongoing renewable energy and infrastructure projects, positioning us for sustained success.”

Hi-Tech Pipes is a steel processing company with a strong presence in steel pipes, hollow sections, tubes, Solar Torque Tubes, cold rolled coils & strips, road crash barriers, solar mounting structures, GP/GC Sheets, Color Coated Coils and a variety of other galvanised products. The company operates six manufacturing facilities located at Sikandrabad (UP), Sanand (Gujarat), Hindupur (AP) - near Bangalore, and Khopoli (Maharashtra), with an installed capacity of 7,50,000 MTPA, on a consolidated basis. The company has direct marketing presence in over 20 states with more than 450+ dealers & distributors across India.

(DISCLAIMER: The views and opinions expressed by investment experts on fortuneindia.com are either their own or of their organisations, but not necessarily that of fortuneindia.com and its editorial team. Readers are advised to consult certified experts before taking investment decisions.)