Shares of Hariom Pipe Industries hit an all-time high of Rs 376 in intraday trade on Wednesday, up 9% on the BSE, after acquiring the operating assets of R P Metal Sections Private Limited for an all-cash consideration of Rs 55 crore.

Shares of the steel products company surpassed the previous high of Rs 373.45 on December 12, 2022.

The company said it had entered into an asset transfer agreement with R P Metal Sections Private Limited on December 26, 2022, to purchase its operating assets to produce galvanised pipe and cold rolled coil. The unit is situated on a 13.83-acre site in SIPCOT Industrial Growth Hub, Perundurai, Tamil Nadu. The acquisition is subject to necessary regulatory approvals.

Hariom Pipe said that the company is expanding its product range to add more value-added products, and the acquisition will help the company achieve this goal.

The company’s market price is 146% higher than the issue price of Rs 153 per share. HPIL debuted on the stock market on April 13, 2022.

One of the most backward integrated steel pipe mills, HPIL produces sponge iron, steel billets, hot rolled strips and steel pipes. Management is confident it can differentiate itself from the industry and continue delivering healthy margins. With up to 30% of its final products containing recycled steel, the company is doing its part to help the environment.

Meanwhile, Hariom Pipe is implementing a capital expenditure plan to expand the capacity of its pipe mill, as outlined in its first IPO prospectus. Also, the company has received Rs 94.02 crore approval from Canara Bank to set up a modern cold rolling mill and galvanised pipe manufacturing plant. The company is confident that the full benefit of all these expansions and capex will be realised from FY23-24.

The company has begun installing rooftop solar installations at its soon-to-be-expanded factory. It is estimated that power generation can meet the electricity demand of the pipe-mill unit, and about 45 million kWh of electricity can be saved every year.