Apollo Tricoat Tubes, formerly known as Best Steel Logistics makes In-line Galvanizing pipes, with manufacturing facility at Malur, Karnataka and total capacity of 75.000 MTPA.
The stock is very much in the limelight today morning, showing some good volumes and price spurted over 5.5% to Rs.143.75. Its 52-week high is at Rs.191.
The reason for this sudden interest in the stock? On 5th March, it started commercial production of in-line galvanizing pipes at its manufacturing facility at Malur.
The company is confident that these pipes will help create and capture a niche market of high margin coated tubes in india and will further address a huge latent demand in the country, in the longer term.
The focus is now towards launching innovative products like Door frames and Hybrid pipes (PVC With in-line coating).
On October 18, 2018, Shri Lakshmi Metal Udyog made an open offer which got completed on 1st Feb’19 and SLMUL became the promoter AproIlo Tricoat Tubes Limited.
During the offer period, SLMUL acquired 13.25.000 Equity Shares representing 5.16% of the paid-up share capital of Apollo Tricoat from open market and 15.36.209 Equity Shares representing 5.98% of the paid-up share capital of Apollo Tricoat as tendered under open offer, aggregating to 28.61.2091 Equity Shares representing 1 1.14% of the paid-up share capital AproIlo Tricoat. The offer was made at Rs.135 per share to the shareholders of Apollo Tricoat.
Financially, the run has not been good as it ended 9MFY19 with a net profit of Rs.2.5 crore v/s Rs.6 crore (YoY). It had ended FY18 with a net profit of Rs.7 crore.