 "Hi-Tech Pipes launches QIP at floor price of Rs 194.98 per share; stock up")
Hi-Tech Pipes share price: Pipe manufacturer Hi-Tech Pipes shares gained up to 2.55 per cent to hit an intraday high of Rs 203 per share on Tuesday, October 8, 2024.
Hi-tech Pipes shares rose after the company announced that it has launched its qualified institutional placement (QIP), setting a floor price of Rs 194.98 per share, as approved by its board and shareholders.
In an exchange filing, Hi-Tech Pipes said, “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 preliminary placement document was finalised by the committee during a meeting on October 7, the company said.
Earlier, on October 3, Hi-Tech Pipes reported its highest-ever sales volumes for the second quarter, reaching 123,027 tonnes, a 22.5 per cent year-on-year (Y-o-Y) growth. Sales for the first half of FY25 (April-September) stood at 245,182 tonnes, reflecting a robust 32.55 per cent year-on-year increase.
The growth came on the back of a surge in demand across key sectors such as infrastructure, water transportation, and solar energy.
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Despite challenges from the monsoon season, Hi-Tech Pipes has effectively capitalised on increased government spending in critical infrastructure projects and private investment in renewable energy initiatives, the company said.
"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,” said Ajay Kumar Bansal, Chairman, Hi-Tech Pipes.
Looking ahead, Bansal stated that they are 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. Our commitment to quality, sustainability, and operational efficiency remains unwavering. We will continue to focus on innovation and customer satisfaction to maintain our competitive edge in the market,” Bansal added.
At 11:40 AM, Hi-Tech Pipes were trading 0.76 per cent at Rs 199.45 per share. In comparison, BSE Sensex was trading 0.58 per cent higher at 81,523.72 levels.