Hi-tech Pipes' Rs 600-crore QIP to open next week; funds to be used for doubling capacity

Shares of the company have surged more than 40 percent in the last three months with the one-year gains pegged at over 125 percent.

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26 Aug, 2025 12:21

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Hi-tech Pipes, which is the third-largest pipe maker of the country with a capacity of nearly a million tonnes, plans to raise as much as Rs 600 crore through a qualified institutional placement (QIP), which could open as early as next week, said people familiar with the development.

The Delhi-based company, which has marquee clients including BHEL, SAIL, NTPC, Adani Group, Jio, Shapoorji Pallonji, ArcelorMittal Nippon Steel India and Delhi Metro among others, plans to use the funds for doubling its capacity to nearly 2 million metric tonnes per annum (MTPA).

“The QIP is an important milestone for the company as the funds will help it set up new plants and double its capacity making it the second-largest pipe manufacturer in the country,” said a person familiar with the development.

“The QIP roadshows have got a strong response and the offer is expected to open in the coming week,” he said wishing not to be named.

Incidentally, the company already boasts of good names in its list of shareholders with mutual funds owning a stake of 7.13 percent – ITI Mutual Fund, Bandhan Mutual Fund and HSBC Mutual Fund own over a percent each through their schemes.

Further, alternative investment funds or AIFs also have a stake of a little over three percent in the company with foreign institutional investors (FIIs) owning a stake of nearly nine percent.

The company has already expanded its capacity from 3.6 lakh MTPA in FY18 to 7.5 lakh MTPA in FY24 and is in the process of further expanding its capacity from 1 million MTPA in FY25 to 2 million MTPA by FY27, which will make it the second-largest player in the industry after Apollo Pipes.

The company has a network of more than 450 dealers and distributors with six plants spread across states including Uttar Pradesh, Gujarat, Maharashtra, Andhra Pradesh and NCR region. Using the QIP proceeds, the company aims to set up one more plant by end of the current year.

Incidentally, the company, which aims to be a debt-free company by FY26, achieved its highest-ever sales volume in Q2FY25 and H1FY25.

“The company reported sales volumes of 123,027 MT for Q2 FY25, representing a remarkable 22.50% year-on-year (YoY) growth. For the first half of FY25, sales volumes reached to 245,182 MT, reflecting an outstanding 32.55% YoY increase,” stated a stock exchange announcement by the company on Thursday.

“This growth is primarily driven by a surge in demand across key sectors, including infrastructure, water transportation, and solar energy. Despite the challenges posed by the monsoon season, Hi-Tech has successfully capitalized on opportunities arising from increased government spending in critical Infrastructure projects and Private Investment in renewable energy projects,” added the statement.

The company, with a market capitalisation of nearly Rs 3,400 crore, is part of the BSE SmallCap index. Shares of the company have surged more than 40 percent in the last three months with the one-year gains pegged at over 125 percent.

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