Small-cap Stock Overview: Hi-Tech Pipes Limited, a notable player in the small-cap segment, has achieved significant stock price growth, soaring approximately 130% over the past year. The company recently announced a successful fundraising effort, raising ₹500.79 crore through a Qualified Institutional Placement (QIP). This was disclosed in a regulatory filing made on October 11, 2024.
The QIP was conducted from October 7 to October 11, during which Hi-Tech Pipes allotted 2,69,96,734 equity shares to qualified institutional buyers at an issue price of ₹185.50 per share. This pricing includes a premium of ₹184.50 and reflects a discount of 4.86% compared to the floor price set by regulatory guidelines.
Hi-Tech Pipes Share Price Performance
Hi-Tech Pipes’ stock has demonstrated remarkable performance, with a year-to-date (YTD) increase of 68%. The share price is observed rising from ₹119.45 to ₹201.60 as reported by BSE. On October 11, 2024, the stock closed at ₹201.25, exhibiting a slight decline. Over the past year, Hi-Tech Pipes has provided investors with an impressive return of 130%. Furthermore, in the last two years, the stock’s value has surged by 240%, underscoring its strong market performance.
Stock Split and Market Capitalization
In a strategic move to enhance shareholder value, Hi-Tech Pipes executed a stock split in March 2023, reducing the face value of each equity share from ₹10 to ₹1, resulting in the conversion of each share into ten shares. As of October 11, 2024, the company’s market capitalization stands at ₹3,550.40 crore, based on BSE calculations, positioning it strongly within the small-cap segment.
Share Allotment and Capital Increase
Arun Kumar, the Company Secretary and Compliance Officer of Hi-Tech Pipes, detailed in the filing, “The Fund Raising Committee convened on October 11, 2024, and approved the issue and allotment of 2,69,96,734 Equity Shares to eligible qualified institutional buyers.” Following this allotment, the company’s paid-up equity share capital has escalated from ₹17.61 crore to ₹20.31 crore. The newly issued shares are set to be traded on both the BSE and the National Stock Exchange (NSE).
Investor Participation
The QIP attracted a diverse array of both domestic and foreign institutional investors. Among the noteworthy domestic participants was Bandhan Mutual Fund, which was allocated 11.98% of the total issue size, along with Bank of India Mutual Fund. Internationally, investors such as BOFA Securities Europe SA and Intuitive Alpha Investment Fund also played a significant role in the fundraising process, reflecting robust interest in the company’s equity.
Disclaimer
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