unlisted shares

On January 20, Motilal Oswal bought a 2.5% stake in Hi-Tech Pipes, a small-cap company proving to be a multi-bagger in the stock market. Is there a specific reason for betting on the stocks of a small cap, or is this just another part of the growth strategy that the company is implementing? 

The data on the National Stock Exchange (NSE) official website reveals that a subsidiary of the company has bought 2 lakh shares at Rs. 937, and the other arm of the company raised 1 lakh shares via open market operations. Before getting into the details of the deal, let us have a look at both the companies and their profiles. 

About Motilal Oswal Financial Services Limited (MOFSL)

Motilal Oswal Financial Service Limited (MOFSL), incorporated in 1987, is a financial services firm with a diversified presence in various financial services and products. This diversified presence offers room for an extensive client base. The company caters to retail investors, MFs, FIIs, and other corporate clients and has carved out a niche for itself in the financial markets and has given fruitful outcomes to the investors holding Motilal Oswal unlisted shares. 

Motilal Oswal Purchased a 2.5% Stake In Hi-Tech Pipes

The company in 2023, placed a bet on a small-cap company:  Hi-Tech Pipes, a renowned name supplying steel tubes and pipes to various industries, including infrastructure, telecom, airports, real estate, automobiles etc. Motilal Oswal bought a 2.5% stake in the company ahead of its performance in the market. 

The entire process of stake acquisition happened via open market operations, in which 2,00,000 shares were bought by Motilal Oswal Equity Opportunities Fund Series II at Rs. 937. The primary purpose of an opportunity fund is to buy stocks that have good growth potential so that the investors get good returns. This purchase by Fund Series II was made keeping in mind a similar motive. 

In another round of purchases, 1,00,000 shares were bought by Motilal Oswal Business Advantage Fund Series II  at Rs. 936.99. With a “Buy Right: Sit Tight” motive, the Advantage Fund betted on the small-cap company’s shares.   

The Reason For Betting On Hi-Tech Pipes

There must be a solid reason for the decade-old, well-established financial services firm to bet on the shares of this particular small-cap company. Let us look at why it caught the attention of such a reputable firm in the industry. 

Hi-Tech Pipes is a major player in the piping industry and a major supplier of ERW (Electric Resistance Welding) pipes. The company specialises in supplying steel tubes and pipes to various industries, including telecommunications, defence, real estate, and automobiles. What made the company catch the hype was its performance in the stock market. 

The MutiBagger Performance 

Hi-tech pipes have a market capitalisation of Rs. 10.20 billion, and the share price has climbed up 72% in the last six months, with about a 40% rise in stock prices in the past year. The performance of the stock has skyrocketed 400% in the past three years and has given a whopping 100% return. The stock has given a 287.66% return in the last two years, which gave investors new hopes regarding the performance of the stock. Due to the high returns and unprecedented performance, well-established companies are betting on the stock of this multi-bagger. 

Will Motilal Oswal Benefit From This Investment? 

The stunning performance of High-Tech Pipes has caught the eyes of some of the best companies, and they are ready to place their bets on the high-performing stock of the leading company in the piping industry. Motilal Oswal has also made efforts to benefit from this stock’s growth and bought 2.5% stakes in the company. 

This decision to invest in the shares by Motilal Oswal can prove to be a wise decision, which may further build the investor’s trust and lead to good returns for the company’s shareholders and significantly boost the company’s financials. This decision will indirectly lead to a better performance of Motilal Oswal unlisted shares in the grey market owing to a good boost. 

Be A Part Of The Growth Journey 

If you want to be a part of the company’s growth, the best way is to buy its unlisted shares. There are two ways to claim the company’s growth either by choosing the primary route, which is less risky, but takes time to generate good returns. The other way is to trade in the grey market which serves as an excellent way to diversify the portfolio and generate a good ROI. You can buy Motilal Oswal unlisted shares using various online platforms that help in unlisted share trading. One such platform is Stockify, which eases buying and selling unlisted shares. Visit Stockify for expert guidance and hassle-free trading! 

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