Hi-Tech Pipes News: Hi-Tech Pipes Limited, a prominent player in the steel pipes manufacturing sector, has recently commenced its Qualified Institutional Placement (QIP) worth ₹600 crore on Monday, 7th September 2024. The launch of the QIP comes at a floor price of ₹194.98 per share, which is approximately 2.60% lower than the current share price of Hi-Tech Pipes at ₹200 per share. This small-cap multibagger stock has informed investors through an exchange filing about the initiation of its QIP offer. Prior to this, the company’s board had granted approval for the QIP during their meeting on 19th August 2024, setting a clear path for this essential capital-raising initiative.
Hi-Tech Pipes QIP Details
In their official communication to the Indian stock market, Hi-Tech Pipes stated: “We wish to inform you that following the approval at the Board of Directors meeting on August 19, 2024, and the special resolution passed during the fortieth Annual General Meeting on September 21, 2024, the Fund Raising Committee convened on October 7, 2024, and took several significant decisions. These included a) Approval of the preliminary placement document along with the related application form for the QIP; b) Authorization to open the Issue today; and c) Setting the floor price for the Issue at ₹194.98 per Equity Share, determined in accordance with the pricing formula outlined in Regulation 176 of the SEBI ICDR Regulations.”
Essential Pricing Regulations
Hi-Tech Pipes emphasized the importance of the and noted: “We wish to inform you that the ‘relevant date’ for determining the Floor Price in accordance with Regulation 171(b(i) of the SEBI ICDR Regulations is October 7, 2024. The Floor Price has been established based on the prescribed pricing formula under Regulation 176(1) of the SEBI ICDR Regulations.” This clarity ensures that investors have confidence in the valuation process of the stock during this QIP.
Opportunity for Discount
As per Regulation 176(1) of the SEBI ICDR Regulations, and with the backing of the shareholders via a special resolution at the fortieth Annual General Meeting, the Company may offer a discount of up to 5% on the floor price for the Issue at its discretion. This potential discount gives institutional investors an added incentive to participate in the QIP, making it an attractive option in the current market landscape.
Performance of Hi-Tech Pipes Stock
At 2:26 PM, the Hi-Tech Pipes share price was hovering around ₹200 per share, proving its position as one of the successful small-cap stocks in recent years. Investors have reaped substantial rewards from this multibagger stock, with an impressive growth of nearly 70% year-to-date (YTD), a remarkable 135% increase over the past year, and an astonishing 1,200% growth over the last five years. These statistics highlight the Company’s robust performance and its potential for further growth.
Business Update for H-1FY25
On October 3rd, 2024, Hi-Tech Pipes announced its impressive sales volume results for the second quarter and first half of FY25, ending September 30, 2024. The Company reported sales volumes of 123,027 MT for Q2 FY25, reflecting a remarkable year-on-year (YoY) growth of 22.50%. Additionally, for H1 FY25, the total sales volume reached 245,182 MT, demonstrating a significant YoY increase of 32.55%. These figures underline the Company’s strong operational performance and commitment to effectively meet market demand.
Disclaimer: The information and opinions expressed herein are those of individual analysts or broking companies and do not necessarily reflect the views of any professional advisory service. We recommend that investors seek advice from certified financial experts prior to making any investment decisions.
