Hi-Tech Pipes Launches ₹600 Crore QIP: Small-Cap Multibagger Stock Offers Shares at ₹194.98 – 2.6% Below Market Price

Hi-Tech Pipes News: Steel pipes manufacturer Hi-Tech Pipes Limited opened a Qualified Institutional Placement (QIP) worth ₹600 crore on Monday, September 7, 2024. The QIP was set at a floor price of ₹194.98 per share, which is about 2.60% lower than the current Hi-Tech Pipes share price of ₹200 per share. The company announced the QIP in an exchange filing, confirming the launch at this price. The board had already approved the proposal during a meeting on August 19, 2024.

Hi-Tech Pipes QIP Details:

The small-cap company shared the news of the QIP launch with the Indian stock market, stating, “Following approval from the Board of Directors on August 19, 2024, and a special resolution by shareholders at the 40th Annual General Meeting on September 21, 2024, the Fund Raising Committee passed the following resolutions during a meeting on October 7, 2024:

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a) Approved the preliminary placement document dated October 7, 2024;
b) Authorized the launch of the QIP on October 7, 2024;
c) Set the floor price for the issue at ₹194.98 per share.”

The company also mentioned that the ‘relevant date’ for determining the floor price is October 7, 2024, as per SEBI regulations.

Additionally, the company may offer up to a 5% discount on the floor price, depending on consultation with the lead manager of the issue.

Hi-Tech Pipes Share Price History:

As of 2:26 PM on Monday, Hi-Tech Pipes’ stock was trading at ₹200 per share. The small-cap stock has been a multibagger in the Indian stock market in recent years. Year-to-date, the stock is up nearly 70%, with a 135% increase over the past year, and a whopping 1,200% rise over the last five years.

Business Update for H1 FY25:

On October 3, 2024, Hi-Tech Pipes announced strong sales volume figures for the second quarter and first half of fiscal year 2025, ending September 30, 2024. The company reported sales volumes of 123,027 MT for Q2 FY25, reflecting a 22.50% year-on-year growth. For the first half of FY25, sales volumes hit 245,182 MT, marking a 32.55% year-on-year increase.