Hi-Tech Pipes Raises ₹500 Crore Through QIP After 130% Stock Surge in One Year

Small-cap stock Hi-Tech Pipes Limited, which has seen its stock price soar by around 130% in the past year, has successfully raised ₹500.79 crore through a Qualified Institutional Placement (QIP). The company shared this news in a regulatory filing on October 11, 2024.

The QIP process started on October 7 and closed on October 11. During this time, the company allotted 2,69,96,734 shares to institutional investors at ₹185.50 per share, which includes a premium of ₹184.50. This issue price also reflects a discount of 4.86% compared to the floor price set by SEBI regulations.

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Hi-Tech Pipes Share Price Performance

Hi-Tech Pipes’ share price has jumped 68% so far this year, rising from ₹119.45 to ₹201.60 on the BSE. On October 11, the stock closed at ₹201.25 per share, showing a slight drop. However, over the past year, the stock has delivered an impressive 130% return. In the last two years, the value of Hi-Tech Pipes has skyrocketed by 240%.

In March 2023, Hi-Tech Pipes did a stock split, reducing the face value of its shares from ₹10 to ₹1, meaning one share became 10. As of October 11, the company’s market capitalization stands at ₹3,550.40 crore, according to BSE.

Arun Kumar, Company Secretary and Compliance Officer at Hi-Tech Pipes, said in a statement, “The Fund Raising Committee at its meeting today, October 11, 2024, approved the issue and allotment of 2,69,96,734 Equity Shares to eligible qualified institutional buyers.”

After this allotment, the company’s paid-up equity share capital has increased from ₹17.61 crore to ₹20.31 crore. The newly issued shares will be listed on both the BSE and NSE.

The QIP attracted a mix of both domestic and foreign institutional investors. Notable domestic participants included Bandhan Mutual Fund, which took 11.98% of the total issue, and Bank of India Mutual Fund. Foreign investors like BOFA Securities Europe SA and Intuitive Alpha Investment Fund also invested significantly in the QIP.