Hi-Tech Pipes Set to Raise a Whopping ₹600 Crore: What’s Their Next Big Move?

Hi-Tech Pipes Ltd, a manufacturer of steel pipes, has announced that its board of directors has approved a proposal to raise up to ₹600 crore through the issuance of various securities.

The fundraising plan may include issuing equity shares or other equity-linked instruments, such as convertible preference shares, fully or partially convertible debentures, non-convertible debentures paired with warrants, or other eligible securities.

The company intends to secure the funds through several channels, including private placements, Qualified Institutional Placements (QIPs), follow-on public offerings, rights issues, or any other legally permitted methods.

The final structure of the securities and the specific premium or discount to be applied will be determined based on prevailing market conditions and regulatory requirements. This approval is contingent upon obtaining the necessary clearances from shareholders, as well as statutory, regulatory, and other relevant authorities.

Shares of Hi-Tech Pipes surged by 5.5%, reaching a record high of ₹192.79 on August 20, following the announcement of a significant order worth ₹105 crore from clients in the renewable energy sector.

These contracts will be executed over the next three months at the company’s new manufacturing facility, located at Sanand Unit II Phase I. "This new facility, outfitted with state-of-the-art technology and efficient production processes, is well-positioned to deliver high-quality steel pipes that meet the stringent standards of the renewable energy sector," the company stated.

A month earlier, Hi-Tech Pipes reported its highest-ever sales volume for the first quarter of the current financial year. The company achieved a 45% increase in Q1 sales volume, reaching 1,22,155 MT, up from 84,489 MT in the same period the previous year. This growth was driven by the company’s strategic initiatives, including expanding product lines, enhancing marketing efforts, and optimizing processes.

Revenue also increased by 35% year-on-year to ₹866.98 crore in the June quarter, along with a 125% surge in net profit to ₹18.05 crore, primarily due to improved sales realizations and contributions from value-added products.

Hi-Tech Pipes Limited is an Indian company that produces steel pipes and various other products for a wide range of industries. Established in New Delhi in 1985 under the name Ram Lal Harbans Lal Limited, the company has been operating for over 30 years and employs a workforce of 1,000 people. Hi-Tech Pipes' products serve multiple sectors, including construction, infrastructure, automotive, energy, agriculture, defense, engineering, and telecommunications.