Hariom Pipe Industries shares hit record high, rally 13% today. Here's why

Shares of Hariom Pipe Industries climbed 13 per cent in Wednesday’s trade to hit a fresh record high after the company said it has entered into asset transfer agreement with RP Metal Sections Private to purchase a unit that manufactures galvanised pipe and cold roll coil.

In a filing to BSE, Hariom Pipe Industries said the unit is spread across 13.83 acres of land and located at SIPCOT Industrial growth centre, Perundurai, Tamil Nadu. The purchase is for an all cash consideration of Rs 55 crore and is subject to obtaining certain permissions and approvals for transfer of license(s), the company told BSE.

Following the development, the scrip rose 13 per cent to hit a record high of Rs 390 on BSE. A total of 1.38 lakh shares changed hands on BSE against a two-week average of 30,000 shares. Against buy orders of 10,623 shares on BSE, the scrip had sell orders of 21,306 shares at 10.43 am.

The scrip has risen 69 per cent year-to-date.

Hariom Pipe Industries said it intends to expand product range to add more value-added products.

The vendor RP Metal Sections Private Limited) is required to take NOC/approval from SIPCOT (State Industries Promotion Corporation of Tamil Nadu) to transfer the lease agreement in the name of Hariom Pipe Industries and all other transfer of Licenses.

"This purchase is subject to obtaining certain permissions and approvals for transfer of license(s) from M/s R.P.Metal Sections Private Limited to M/s Hariom Pipe Industries Limited," the company said.

Hariom Pipe is a manufacturer of iron and steel products. It is an  integrated steel manufacturer with a stronghold in the South Indian market. The company's portfolio consists of mild steel (MS) billets, pipes and tubes, hot rolled (HR) coils and scaffolding systems.

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