Review By on February 10, 2016
Hi-Tech Piles Ltd (HTP) is an ISO 9001 certified company, is one of India's leading engineering house of excellence and innovation producing steel pipes, hollow sections, tubes, cold rolled coils, road crash barriers, solar mounting structures and strips and a variety of other galvanized products. It is serving various industries with its products, ERW pipes & tubes for Oil & Gas and water sector. Black steel pipes, galvanized steel pipes and tubes for construction industry, precision tubes for automobile industry and hollow section for infrastructure and many more to boast of. Today, HTP's multi-locational integrated plants have cold rolling mills to manufacture CRCA coils and strips, Continuous Galvanizing Line to manufacture Corrugated Sheets and Purling, pre-galvanized sheets required for manufacturing GP pipes, latest technology high speed tube mills to manufacture steel tubes, pipes, hollow sections of various sizes and types to cater the requirements of diverse industries and sectors.
To part finance its working capital requirements, general corpus fund needs etc. the company is coming out with a maiden public issue of 2730000 equity shares of Rs. 10 each at a fixed price of Rs. 50 per share to mobilize Rs. 13.65 crore. Issue opens for subscription on 15.02.16 and will close on 19.02.16. Minimum application is to be made for 3000 shares and in multiples thereon, thereafter. Issue is lead managed by Sarthi Capital Advisors Pvt Ltd and Sharepro Services (India) Pvt Ltd is the registrar to the issue. Post allotment, shares will be listed on NSE SME Emerge. Since incorporation till 1987 it issued equity shares at par. Between February 2014 - March 2015 it issued equity at a price of Rs. 100-110. It issued three bonus issues so far in the ratio of 1 for 1 (March 1999), 5 for 1 (October 2013) and 1 for 1 (September 2015). Post issue, its present paid up equity capital of Rs. 7.57 crore will stand enhanced to Rs. 10.30 crore.
On performance front, the company has posted growth in its top / bottom lines from Rs. 370.49 cr. /2.07 cr. (FY 2013), Rs. 385.44 cr. /Rs. 2.59 cr. (FY 2014) and Rs. 459.45 cr. /Rs. 4.98 cr. (FY 2015). For the six months ended 30.09.15 it has posted net profit of Rs. 2.26 cr. on a turnover of Rs. 196.85 cr. If we annualize these earnings and attribute to fully diluted equity post IPO then asking price is at a P/E of 11 that augurs well against industry average of 100 plus.
On merchant banker's front, it has mixed rewards on its past listed mandates. This is the 14th IPO from its stable.
Investors may consider investment in this justifiably priced IPO in a lucrative segment .
Review By on February 10, 2016
Dilip Davda is a veteran financial journalist associated with the Indian stock market since 1978. He has been contributing to print and electronic media on capital markets, insurance, and finance since 1985.
He is widely recognized for reviewing public issues and non-convertible debentures (NCDs) in the primary market. Drawing on over three decades of market experience and close interaction with merchant bankers, his reviews focus on detailed fundamental and financial analysis of companies, with a special emphasis on SME public issues.
Dilip Davda
SEBI Registered Research Analyst – Mumbai
Registration No.: INH000003127 (Perpetual)
Email: dilip_davda@rediffmail.com
Disclaimer: The information provided herein is solely for educational and informational purposes and does not constitute an offer, solicitation, or recommendation to buy or sell any securities. Readers are advised to consult a qualified financial advisor before making any investment decisions. Investments in the securities market are subject to market risks. The author does not intend to invest in the securities discussed.
The initial public offer (IPO) of Hi-Tech Pipes Ltd. offers an early investment opportunity in Hi-Tech Pipes Ltd.. A stock market investor can buy Hi-Tech Pipes IPO shares by applying in IPO before Hi-Tech Pipes Ltd. shares get listed at the stock exchanges. An investor could invest in Hi-Tech Pipes IPO for short term listing gain or a long term.
Read the Hi-Tech Pipes IPO recommendations by the leading analyst and leading stock brokers.
Hi-Tech Pipes IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Hi-Tech Pipes IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Hi-Tech Pipes IPO?"
Our recommendation for Hi-Tech Pipes IPO is to subscribe.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe to the Hi-Tech Pipes IPO.
The Hi-Tech Pipes IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Hi-Tech Pipes IPO allotment status to check.
