Hariom Pipe Industries stock rallies over 3% on announcement of expansion plans

20 Sep 2022 , 02:20 PM

Hariom Pipe Industries Limited has informed that the company is replacing one of its two existing furnaces which has a production capacity of 12-ton with a new 15-ton induction melting furnace to enhance the production capacity.

Accordingly, with the latest technology being used, there will be savings of about 10 lakh units of electricity per annum and will also reduce manpower costs, the company said.

Further, this will be funded through the proceeds of IPO (initial public offering). The cost of this expansion will be around Rs5 crore and is in line with the objects set out in the company’s Prospectus.

“As such, one of the existing furnaces with a production capacity of 12-ton will be temporarily shut down from September 21, 2022 for a period of approximately 45 days. It may be noted that this shutdown will partly impact the production of billets which is the raw material for the production of pipes”, the company further said in a regulatory filing.

The company during such a period will source the raw material required to manufacture the pipes from the open market ensuring uninterrupted production.

On Tuesday at around 2:18 PM, Hariom Pipe Industries Ltd is currently trading at Rs275.20 per share up by Rs8.1 or 3.03% from its previous closing of Rs267.10 per share on the BSE.

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