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Shares of Hariom Pipe Industries hit a record high of Rs 376, as they rallied 9 per cent on the BSE in Wednesday’s intra-day trade following the acquisition of operating assets of R P Metal Sections Private Limited for an all cash consideration of Rs 55 crore. The stock of iron & steel products company surpassed its previous high of Rs 373.45 touched on December 12, 2022.
The company said it had entered into Asset Transfer Agreement with R P Metal Sections Private Limited on December 26, 2022 to purchase their operating Asset which manufactures Galvanized Pipe and Cold Roll coil. This unit is spread across 13.83 acres of land and located at SIPCOT Industrial growth centre, Perundurai, Tamilnadu. The acquisition is subject to necessary regulatory approval.
Hariom Pipe said the company is in the process of expanding product range to add more value-added products, this purchase will help the company in achieving the same.
The market price of the company has zoomed 146 per cent from its issue price of Rs 153 per share. HPIL made its stock market debut on April 13, 2022.
The company is one of the most backward integrated steel pipe mill companies, wherein HPIL manufactures sponge iron, billets, HR strips and pipes. The management is confident to stand out from the overall industry and continue to deliver healthy margins going forward. With up to 30 per cent of the company’s end product which contains recycled steel, the company is trying its bit to contribute to a better environment.
Meanwhile, Hariom Pipe is in the midst of implementing the capex plans for expanding the pipe mill capacities as set out in the prospectus of its maiden IPO. Furthermore, the company has obtained sanction from Canara Bank to the tune of Rs 94.02 crore which will be utilized to set up a modern cold rolled steel mill and a galvanized pipe manufacturing plant. The company is confident that the complete benefits of all these expansions and capex would be visible starting FY’23-24.
The company has initiated the process to install roof top solar power generating unit on the upcoming expansion plants. The power generated is expected to meet the power requirement of the pipe mill unit and will save about 45 million units of electricity annually.
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First Published: Wed, December 28 2022. 10:28 IST
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