Shares of Hariom Pipes, a prominent pipe manufacturer, saw a significant rise of 4.03% on Wednesday, September 25, 2024. The stock reached an intraday high of ₹802.70 per share after the company's board approved a fundraising initiative worth ₹700 crore. This move has attracted attention from investors looking to invest in stocks, especially in the manufacturing sector.
Fundraising approval boosts investor confidence
The fundraising, to be carried out through the issuance of equity shares or other eligible securities, will take place via public or private offerings. The company's announcement clarified that these offerings may include a qualified institutions placement (QIP), complying with SEBI's 2018 regulations. This move is expected to enhance the company's financial strength further, encouraging investors to consider opportunities to invest in stocks within the growing infrastructure and steel sectors.
Hariom Pipes, based in Hyderabad, has also approved increasing its Authorised Share Capital from ₹40 crore to ₹50 crore. The company, known for its integrated steel production, operates manufacturing facilities in Telangana, Andhra Pradesh, and Tamil Nadu. Its product range includes Mild Steel (MS) billets, pipes, tubes, Hot Rolled (HR) coils, Cold Rolled (CR) coils, and scaffolding systems, making it a diverse player in industrial applications.
Market performance and growth potential
The company's stock has been performing well, with a 52-week high of ₹885.05 and a low of ₹441.05. Its market capitalisation currently stands at ₹2,439.26 crore, classifying it within the BSE SmallCap category. As of 9:47 AM on September 25, shares of Hariom Pipes were trading at ₹787.90, up 2.12% from the previous session. With the overall market remaining relatively steady, the company's recent surge provides a strong case for those looking to invest in stocks in this sector.
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