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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.
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