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Hi-Tech Pipes NSE SME IPO review (Apply)

Review By Dilip Davda on Feb 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.


Conclusion / Investment Strategy

Investors may consider investment in this justifiably priced IPO in a lucrative segment . 

Reviewer recommends Subscribing to the issue.

Review By Dilip Davda on Feb 10, 2016

Review Author

DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor before making any actual investment decisions, based on information published here. With entry barriers, SEBI wants only well-informed investors to participate in such offers. With crazy listings in the past, SME IPOs drew the attention of investors across the board. However, as SME issues have entry barriers and continued low preference from the broking community, any reader taking decisions based on any information published here does so entirely at own risk. The above information is based on information available as on date coupled with market perceptions. The Author has no plans to invest in this offer.

(SEBI registered Research Analyst-Mumbai).


About Dilip Davda

Dilip Davda

Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.

Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detail fundamental and financial analysis of companies coming up with IPO helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.

Email: dilip_davda@rediffmail.com

Hi Tech Pipes IPO FAQs

  1. 1. Why Hi Tech Pipes IPO?

    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.

  2. 2. How is Hi Tech Pipes IPO?

    Read the Hi Tech Pipes IPO recommendations by the leading analyst and leading stock brokers.

  3. 3. Hi Tech Pipes IPO what should investors do?

    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 in the above answer.

  4. 4. Is Hi Tech Pipes IPO good?

    Our recommendation for Hi Tech Pipes IPO is to subscribe.

  5. 5. Is Hi Tech Pipes IPO worth Investing?

    As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe to the Hi Tech Pipes IPO.

  6. 6. When will Hi Tech Pipes IPO allotment status?

    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.

  7. 7. When will Hi Tech Pipes IPO list?

    The Hi Tech Pipes IPO will list on Thursday, February 25, 2016, at NSE SME.