Hi-Tech Pipes Board approves fund raising via preferential issue of warrants and shares

Hi-Tech Pipes Limited (HTPL) in its meeting of board of directors held on Thursday, November 24th, has approved decisions on fund raising. The company board has approved 57 lakh full convertible equity warrants at an issue price of Rs 692 per warrant. Each of these warrants can be converted into one equity share, if the owner exercises the right for the same, an official statement said.

The company will issue these warrants to promoters, non-promoters investors including qualified institutional buyers (QIBs). However, the issuance of these warrants is subject to approval of shareholders of the company.

An owner of these warrants can convert them into equity shares with a period of 18 months from the data allotment, in one or multiple tranches.

However, the subscriber of these warrants will have to pay 25% of the warrant price at the time of subscription, whereas the remaining 75% of price shall be payable at the time of conversion into equity shares.

In case the balance payment is not received with the maximum tenure of the warrants, which is 18 months, the amount paid on the warrants shall get lapsed and be forfeited by the company.

The company board has also decided to issue three lakh equity shares with a face value of Rs 10  on a preferential basis each to non-promoters investors, which will be determined by the board.

The company has fixed an issue price of Rs 692 per equity shares or more which will be determined further. However, this issuance will be subject to approval from shareholders.

Shares of the company had settled at Rs 768.50 on Thursday, after rising about one per cent. Incorporated in 1985, Hi-Tech Pipes is engaged in the manufacturing of a wide range of steel tubes and pipes.