Hi-Tech Pipes Ltd announces Successful Closure of INR 5,000 Million QIP with Oversubscription by Marquee Institutional Investors

Hi-Tech Pipes Limited announces successful closure of INR 5,000 Million Qualified Institutional Placement (QIP), with oversubscription by marquee institutional investors. The QIP, which opened on October 7, 2024 (post market hours) and closed on October 11, 2024, received bids of over INR 8,000 Million. The overwhelming response from marquee qualified institutional investors, demonstrates strong confidence on the Company's growth prospects.

The QIP attracted a diverse pool of top-tier institutional investors including mutual funds, and renowned foreign institutions and treasuries, reaffirming the market's belief in Hi-Tech's ability to navigate industry challenges and capitalise on the growing demand in the ERW (Electric Resistance Welding) steel tubes and pipes segment.

The QIP attracted leading domestic institutions like Motilal Oswal Fund, Bandhan Mutual Fund, Bank of India Mutual Fund, JM Financial Mutual Fund, LIC Mututal Fund, WhiteOak Mutual Fund, SBI General Insurance. Besides, prominent global institutions also participated in the QIP.

Mr. Ajay Kumar Bansal, Chairman and Managing Director, said, "We are excited to announce the successful closing of Qualified Institutional Placement (QIP), which represents a significant milestone in our growth strategy. This will enable us to fulfil our goal of capacity expansion and further strengthen our market presence."

"With strengthened financial flexibility and a clear growth trajectory, we are well-positioned to capitalize on sunrise opportunities and further optimise stakeholders value" added Mr. Ajay Kumar Bansal. Mr. Anish Bansal, Whole Time Director, said, "We are thrilled by the overwhelming response to the issuance and deeply value the confidence our investors have placed on us. By strategically allocating these funds, we aim to not only boost revenues but also enhance profitability through increased economies of scale, cost efficiencies and share of value added products. We are on way to doubling our capacities and our target is to expand our capacities to 2 Million Tonnes in next 3 years."

The Company issued 26,996,734 fresh equity shares @ ₹ 185.50 per equity share under QIP, representing a discount of 4.86% to the floor price and 7.39% discount to the last traded price on NSE on October 7, 2024.

Pantomath Capital Advisors Private Limited acted as the sole lead manager to the QIP.

Shares of Hi-Tech Pipes Limited was last trading in BSE at Rs. 185.55 as compared to the previous close of Rs. 185.60. The total number of shares traded during the day was 118749 in over 1235 trades.

The stock hit an intraday high of Rs. 187.85 and intraday low of 184.45. The net turnover during the day was Rs. 22067144.00.

Source : Equity Bulls

Keywords

HiTechPipes INE106T01017 FundRaising QIP Oversubscription