Indian Hume Pipe Snakes North On Buyback Tattle

The share price of Indian Hume Pipe, maker of steel and concrete pipes, rose today after the shareholders approved the proposed buyback scheme on Monday.

The stock increased by five per cent to Rs 603.75 (face value of Rs 100) on the BSE. Only 63 shares changed hands on the BSE, while on the NSE, the volume at the counter was around 1,170 shares.

During the last few months, the share has been surging sharply. From a low of Rs 314 on April 9, the stock gained 92.2 per cent to the current Rs 603.75. Volumes, however, were thin from just 1 share to 300 shares a day on the BSE.

 

The company would buy back a maximum 96,894 shares, representing 25 per cent of the paid-up share capital of the company, involving an aggregate amount not exceeding Rs 6.78 crore. The firm has a tiny equity base of Rs 3.88 crore comprising 3.88 lakh shares of Rs 100 each. As on March 31, 2002, the promoters were holding 53.24 per cent stake in the company.

For the quarter ended June 2002, the company reported an 18 per cent rise in net profit to Rs 99 lakh on a 19 per cent rise in sales to Rs 22.90 crore.

Apart from manufacturing hume pipes, hume-steel pipes, pre-stressed concrete pipes, and RCC poles, the company also undertakes contracts for erection and commissioning of water supply and sewage schemes for various state governments and municipal corporations.