Hi-Tech Pipes hits record high on Rs 105 cr order win, fund raise plans

Hi-tech Pipes shares are up nearly 60 percent year-to-date.

Shares of Hi-Tech Pipes surged as 5.5 percent to hit a record high of Rs 192.79 on August 20 after bagging a large order worth Rs 105 crore from customers in the renewable energy sector.

These contracts, will be executed from our the company's new manufacturing facility located in Sanand Unit II Phase I, over the next three months. "This new facility, equipped with cutting-edge technology and efficient production processes, is poised to deliver high-quality steel pipes that meet the rigorous standards of the renewable energy sector," the company stated.

In addition, the company also announced that its board has given a greenlight to raise funds worth Rs 600 crore through the issuance of various securities.

The company plans to raise the funds through various options, including a private placement, one or more qualified institutional placements, a follow-on public issue, or a rights issue, it stated in an exchange filling.

Follow our market blog to catch all the live action

Meanwhile, the final structure of the securities, along with the specific premium or discount applied, will be decided based on market conditions and regulatory requirements.

A month ago, Hi-Tech Pipes Hi-Tech reported its highest-ever sales volume for Q1 of the current financial year. The company delivered a 45 percent spike in its Q1 sales volume at 1,22,155 MT, up from 84,489 MT in the same period last year. This was driven by the company's strategic initiatives, such as expanding product lines, boosting marketing efforts, and optimising processes.

Revenue also rose 35 percent on year to Rs 866.98 crore in the June quarter, along with a 125 percent surge in its net profit to Rs 18.05 crore, mainly on account of better sales realisation sand contribution of value added products.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.