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Hi-Tech Pipes surges 18% as board to mull fund raising on November 24

The board will meet to consider fund raising through preferential issue of security(ies) to the person belonging to promoter/promoter group/non promoter group category

Buzzing stocks | Markets

SI Reporter  |  Mumbai 

Steel pipes
Steel pipes

Shares of Hi-Tech Pipes moved higher by 18 per to its record high level of Rs 739.95 on the BSE in Tuesday’s intra-day after the company announced that the board will meet on Thursday, November 24, to consider fund raising via preferential issue.

"The meeting of the board of directors of the company will be held on Thursday, November 24, 2022, to consider, approve or recommend fund raising through preferential issue of security(ies) to the person belonging to promoter/promoter group/non promoter group category," Hi-Tech Pipes said in a regulatory filing, after market hours, on Monday.

The stock of the iron & steel products company surpassed its previous high of Rs 685, touched on October 4, 2022. In the past three trading days, it has rallied 23 per cent. The market price of Hi-Tech Pipes has also appreciated by 127 per cent from its low of Rs 326, touched on June 23.

Hi-Tech Pipes is one of India's leading steel processing companies with a strong presence in steel pipes, hollow sections, tubes, cold rolled coils & strips, road crash barriers, solar mounting structures, GP/GC sheets, color coated coils and a variety of other galvanised products.

In April-September period (H1FY23), the company's EBITDA/ton declined by 26 per cent to Rs 2,640 from Rs 3,605 in H1FY22. However, revenue from operations was up 32 per cent to Rs 1,114 crore as compared to Rs 844 crore in H1FY22 led by higher sales volume, and better sales realisation.

The management said the July-September quarter witnessed higher volume, sales, and better operating performance of the company. The profitability of the quarter remained in pressure due to provisioning of expected credit loss on an OEM customer and correction in steel prices.

However, steel prices should bottom out soon, and with the company's strong presence and continuously expanding reach, the company can cater most of the demands and will be further increasing volumes in medium and long term, the management said.

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First Published: Tue, November 22 2022. 15:32 IST