Shares of Hariom Pipe Industries Ltd. surged nearly 16% to hit a record high. It was up 403 points on the BSE in Wednesday’s early trading session after the company informed on Tuesday that it has acquired the operational assets of RP Metal Sections Pvt Ltd. 55 crores – in total cash consideration.
“We would like to inform you that our company had entered into an asset transfer agreement with RPMetal Section Private Limited on December 26, 2022, to purchase their operating asset, which manufactures galvanized pipe and cold rolled coil. The unit is spread over 13.83 acres of land and is located at SIPCOT Industrial Development Centre, Perundurai, Tamil Nadu. This purchase is for all cash consideration of Rs. 55 Crore (Fifty Five Crore only),” the company announced in an exchange filing.
Explaining the objective of the transaction, Hariom Pipes said that the company is in the process of expanding the product range to add more value-added products, and this purchase will help the company achieve the same.
This purchase of assets is subject to obtaining certain permissions and approvals for transfer of license from RP Metal to Hariom Pipe Industries, it added and seller RPMetal is required to obtain NOC/approval from SIPCOT (State Industries Promotion Corporation of Tamil Nadu) Is. ) Transfer of lease agreement in the name of Hariom Pipe Industries and transfer of all other licences.
The newly listed stock, which made its market debut in April this year, has given multibagger Returns of over 160% in eight months from its IPO issue price 153 each. 130 crore Initial Public Offering (IPO) Hariom Pipe Industries was oversubscribed almost 8 times.
Headquartered in Hyderabad and incorporated in 2007, the company has a diversified product portfolio comprising of Mild Steel (MS) Billets, Pipes & Tubes, Hot Rolled (HR) Coils and Scaffolding Systems and is engaged in diverse end-use industries such as housing, infrastructure fulfills. , agriculture, automotive, solar, construction and engineering. For the quarter ending September 2022 (Q2), the company reported a 29% growth in its standalone net profit 9.3 crore as compared to 7.2 crore in the same quarter last year.
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