Hi-Tech Pipes Launches QIP At Floor Price Of Rs 194.98 Per Share
The company has launched the QIP about a month-and-a-half after receiving the board's nod to raise up to Rs 600 crore through various instruments.
Hi-Tech Pipes Ltd. on Monday announced the launch of its qualified institutional placement offer at a floor price of Rs 194.98 per share.
Hi-Tech, in an exchange filing, said that its fundraising committee has "authorised the opening of the issue today, i.e., Oct. 7, 2024; and approved the floor price for the issue, being Rs 194.98 per equity share.".
On Aug. 19, the company's board had approved a plan to raise up to Rs 600 crore.
The modes for fundraise, which the board had approved, included a private placement or through one or more QIPs, "or further public issue or a rights issue or through any other permissible mode under applicable laws and/or combination thereof."
In September, Hi-Tech Pipes' Whole Time Director Anish Bansal said the company expects to achieve a revenue of about Rs 3,500-Rs 3,700 crore in the financial year 2024–25.
The value-added products segment, which contributes 36% to the company’s topline presently, could rise up to nearly half of the total revenue in the next two to three years, he said.
In the quarter ended June 2024, Hi-Tech Pipes' net profit rose to Rs 18.05 crore from Rs 8.02 crore in the corresponding period of the previous fiscal. The total income climbed to Rs 867.7 crore from Rs 642.4 crore in the year-ago quarter.
Shares of Hi-Tech Pipes on Monday closed 4.73% higher at Rs 198.73 apiece on the NSE, compared to a 0.87% decline in the benchmark Nifty 50.
The company's stock has increased by 2.8% on a year-to-date basis and by 134.4% over the past 12 months.
The three analysts tracking the stock have a "buy" rating, according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 6.2%.
