Last updated: December 28, 2022, 12:19 PM IST
Shares of Hariom Pipe Industries hit an all-time high
Shares of Hariom Pipe Industries hit an all-time high of 14.86 percent in Wednesday’s trading
Shares of Hariom Pipe Industries hit an all-time high of 14.86 percent in Wednesday’s trading after the company said it has entered into an asset transfer agreement with RP Metal Sections Private to buy a unit that produces galvanized pipes and produces cold rolled coils.
In a filing with BSE, Hariom Pipe Industries said the unit is spread over 13.83 acres of land and is located in the SIPCOT Industrial growth hub, Perundurai, Tamil Nadu. The purchase is for an all-cash consideration of Rs 55 crore and is subject to obtaining certain consents and approvals for the transfer of license(s), the company told BSE.
Hariom Pipe said the company is in the process of expanding its product range to add more value-added products. This purchase will help the company achieve the same.
The market price of the company is down 146 percent 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 mills, in which HPIL produces sponge iron, billets, HR strips and pipes. Management is confident to differentiate itself from the general industry and continue to deliver healthy margins going forward. With up to 30 percent of the company’s end product containing recycled steel, the company is doing its bit for a better environment.
Meanwhile, Hariom Pipe is in the process of executing the investment plans to expand the capacity of the pipe plant, as set out in the prospectus of the initial public offering. In addition, the company has obtained permission from Canara Bank in the amount of Rs 94.02 crore, which will be used to set up a modern cold-rolled steel plant and a factory for the production of galvanized pipes. The company is confident that the full benefits of all these expansions and investments will be visible from FY’23-24.
Hariom Pipe is a manufacturer of iron and steel products. It is an integrated steel producer with a strong position in the South Indian market. The company’s portfolio consists of mild steel (MS) billets, tubes and pipes, hot rolled coils (HR), and scaffolding systems.
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