Srikalahasthi Pipes raises Rs 250 crore via QIP

Kolkata: Srikalahasthi Pipes Limited (SPL), a group company of Electrosteel and a leading manufacturer of ductile iron (DI) pipes used in water transportation and distribution, has raised Rs. 250 crore through Qualified Institutional Placement (QIP). The company accordingly will issue 69,34,812 equity shares of face value of Rs 10 per equity share at a price of Rs 360.50, including a premium of Rs. 350.50.

Commenting on the development, 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."

He added that the company is also exploring possibilities for diversification in related industry and products for future growth.


Srikalahasthi Pipes Limited 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 (“MBF”) plant, sinter plant, cement plant and captive power plants along with sewage treatment facilities. In last quarter of the fiscal 2017, the company increased the manufacturing capacity of DI Pipes facility from 225,000tnne pr annum ( TPA) to 300,000 TPA and the capacity utilization is at about 90%.

The company reported a profit before tax of Rs.51.46 crore in the quarter ended September 30, 2017 as compared to Rs 35.27 crore registered in the previous corresponding quarter. PAT for the half year ended September, 2017 was higher at Rs.74.05 crore as against Rs.68.95 Crores reported in previous the corresponding half year.