Hi-Tech Pipes’ share rally 4 per cent during the early trading session on Monday after the company signed memorandum of understanding (MoU) with the Government of Uttar Pradesh.
Hi-Tech Pipes has signed MoU to set up a mega manufacturing facility of steel tubes and flat steel processing with a proposed investment of Rs 510 crore in a phased manner, said the company in a regulatory filing.
“The favorable business environment and the special incentive packages offered by the UP government will additionally help the company to strengthen its position in the steel tubes & Pipes and flat steel processing industry,” it further said.
Following the announcement, shares of Hi-Tech Pipes jumped 4 per cet to Rs 879.35 on Monday, before giving up partial gains. The scrip had settled at Rs 852.55 on Friday.
The smallcap company was listed in February 2016 on NSE’s SME platform after selling its shares for Rs 50 apiece in the IPO. The stock has jumped more than 1,650 per cent last seven years, from its issue price.
From its 52-week low of Rs 323 in June 2022, the stock has risen about 175 per cent on Monday. In the last one year, the stock has jumped more than 40 per cent. Hi-Tech Pipes is currently commanding a marketcap of Rs 1,075 crore.
“We are extremely proud and happy that the Company has entered this MoU with UP Government, Hi-Tech Pipes has strong presence in Uttar Pradesh for more than three decades with our own manufacturing facilities,” said Ajay Kumar Bansal, Managing Director, Hi-Tech Pipes.
This MoU further reinforces our commitment to the state by creating more employment and business opportunities. This transaction will support the capacity expansion plans and to strengthen our position in the steel tubes and pipes space, he said.
Hi-Tech Pipes is a a steel processing company than provides innovative products in steel pipes, hollow sections, tubes, cold rolled coils and strips, road crash barriers, solar mounting structures, color coated coils and other galvanized products.
The four-decade old company operates manufacturing facilities at Sikandrabad (UP), Sanand (Gujarat), Hindupur (Andhra Pradesh) and Khopoli (Maharashtra), with an installed capacity of 5,80,000 MTPA on a consolidated basis.