Srikalahasthi Pipes raises ₹250 cr via QIP

V Rishi Kumar Hyderabad | Updated on January 09, 2018 Published on December 29, 2017

The company will issue 69,34,812 equity shares of face value of ₹10 per equity share at ₹360.50

Srikalahasthi Pipes Ltd, a manufacturer of ductile iron pipes used in water transportation and distribution, has raised ₹250 crore through Qualified Institutional Placement (QIP) which saw participation by some highly reputed investors.

The company will issue 69,34,812 equity shares of face value of ₹10 per equity share at ₹360.50, including a premium of ₹350.50.

Ashutosh Agarwal, Executive Director, Group Finance, said: “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 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 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 the 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 utilisation is at about 90 per cent.

The company had reported profit after tax of ₹74.05 crore for the half year ended September 2017.

Srikalahasthi Pipes is exploring possibilities for diversification in related industry and products for future growth.

Published on December 29, 2017

A letter from the Editor

Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill.

In these difficult times, we, at BusinessLine, are trying our best to ensure the newspaper reaches your hands every day. You can also access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all our readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. You can help us by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section.

Our subscriptions start as low as Rs 199/- per month. A yearly package costs just Rs. 999 – a mere Rs 2.75 per day, less than a third the price of a cup of roadside chai..

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
This article is closed for comments.
Please Email the Editor