Shares of Hariom Pipe Industries hit a record high of 14.86 per cent in Wednesday’s trade after the company said it has entered into asset transfer agreement with RP Metal Sections Private to purchase a unit that manufactures galvanised pipe and cold roll coil.
In a filing to BSE, Hariom Pipe Industries said the unit is spread across 13.83 acres of land and located at SIPCOT Industrial growth centre, Perundurai, Tamil Nadu. The purchase is for an all cash consideration of Rs 55 crore and is subject to obtaining certain permissions and approvals for transfer of license(s), the company told BSE.
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.
Hariom Pipe is a manufacturer of iron and steel products. It is an integrated steel manufacturer with a stronghold in the South Indian market. The company’s portfolio consists of mild steel (MS) billets, pipes and tubes, hot rolled (HR) coils and scaffolding systems.
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