Business
Srikalahasthi Pipes Limited concludes QIP process Raises Rs 250 crores at Rs 360.50 per share
December 29, 2017: Srikalahasthi Pipes Limited (SPL), one of the leading manufacturers of Ductile Iron Pipes used in water transportation and distribution has raised Rs. 250 crores through Qualified Institutional Placement (QIP) which saw participation by some highly reputed investors. The Company accordingly will issue 69,34,812 equity shares of face value of Rs. 10 per equity share at a price of Rs. 360.50 including a premium of Rs. 350.50.
Mr Ashutosh Agarwal, Executive Director – Group Finance informed that this is an important milestone in our corporate journey and the response to this QIP issue is a testimony to SPL’s growth oriented financial performance and confidence reposed by the investors in SPL’s business model.
Srikalahasthi Pipes Limited has an integrated manufacturing facility at Srikalahasthi, Chittoor District, Andhra Pradesh, located near Tirupati that includes a Ductile Iron (DI) pipe plant, coke oven plant, mini blast furnace (“MBF”) plant, sinter plant, cement plant and captive power plants along with sewage treatment facilities. The Company has more than 15 years of experience in the DI Pipes industry. In last quarter of Fiscal 2017, the Company increased the manufacturing capacity of DI Pipes facility from 225,000 TPA to 300,000 TPA and the capacity utilization is at about 90%.
The Company has reported Profit before tax of Rs.51.46 Crores in the quarter ended 30th September, 2017 as compared to Rs.35.27 Crores registered in the corresponding quarter ended 30th September, 2016. The Profit after tax for the half year ended September, 2017 is higher at Rs.74.05 Crores as against Rs.68.95 Crores reported in the corresponding half year ended 30th September, 2016.
He further informed that the Company is also exploring possibilities for diversification in related industry and products for future growth.
The Company’s shares were closed at Rs 405 on 28th Dec 2017