130% Return In 1 Year: Small Cap Stock Closes QIP Issue To Raise Rs 500 Cr

Delhi-based Hi-Tech Pipes Limited (HTPL), a major force in the Indian pipe market, has successfully raised Rs 500 Cr through qualified institutional placement (QIP). The company's Fund Raising Committee met on October 11 and notified stock exchanges that they had approved the issue and allotment of 2,69,96,734 equity shares to qualified institutional buyers who meet the eligibility requirements. The equity shares were allotted to these buyers at a premium of Rs 184.50 per equity share, or the issue price of Rs 185.50 per equity share.

The issue ran from October 7, 2024, to October 11, 2024. As a result of the equity shares allocated in the issue, the company's paid-up equity share capital increased from Rs 17,61,11,000, which consisted of 17,61,11,000 equity shares with a face value of Rs 1/-per share, to Rs 20,31,07,734, which consisted of 20,31,07,734 equity shares with a face value of Rs 1/-per share. Top domestic funds, including Motilal Oswal Fund, Bandhan Mutual Fund, Bank of India Mutual Fund, JM Financial Mutual Fund, LIC Mututal Fund, WhiteOak Mutual Fund, and SBI General Insurance, were the top allottees in the QIP.
Allotees from both domestic and foreign institutions participated in the QIP. The top 5 domestic institutions were Bandhan Business Cycle Fund, Bandhan Small Cap Fund, Bank of India Business Cycle Fund, Bank of India Flexi Cap Fund and Bank of India Small Cap Fund to whom number of shares of 539,082, 2,695,416, 377,358, 970,350 and 808,624 respectively were allotted.

Whereas among the top 5 foreign institutions were Arnesta Global Fund -1, Arven, Beacon Stone I, BOFA Securities Europe SA -ODI and Elite Capital Fund to whom the number of shares of 404,312, 2,695,416, 269,540, 1,811,319 and 269,542 respectively were allotted.

Renowned institutional investors oversubscribed the Rs 5,000 million Qualified Institutional Placement (QIP), which was successfully closed, according to Hi-Tech Pipes Limited. Between October 7, 2024, and October 11, 2024, the QIP was up for bids and got approximately Rs 8,000 million in proposals.

Mr. Ajay Kumar Bansal, Chairman and Managing Director, said, "We are excited to announce the successful closing of Qualified Institutional Placement (QIP), which represents a significant milestone in our growth strategy. This will enable us to fulfil our goal of capacity expansion and further strengthen our market presence." "With strengthened financial flexibility and a clear growth trajectory, we are well-positioned to capitalize on sunrise opportunities and further optimise stakeholders value" added Mr. Ajay Kumar Bansal.

Mr. Anish Bansal, Whole Time Director, said, "We are thrilled by the overwhelming response to the issuance and deeply value the confidence our investors have placed on us. By strategically allocating these funds, we aim to not only boost revenues but also enhance profitability through increased economies of scale, cost efficiencies and share of value added products. We are on way to doubling our capacities and our target is to expand our capacities to 2 Million Tonnes in next 3 years".

One of the top steel processing companies in India, Hi-Tech Pipes offering top-notch, cutting-edge products for almost 40 years. Its product line includes GP/GC Sheets, Solar Torque Tubes, Hollow Sections, Steel Pipes, Cold Rolled Coils & Strips, Road Crash Barriers, Solar Mounting Structures, and a variety of other galvanised products.