Prakash Pipes Limited declares 10% Interim Dividend and 3.6 MW Solar Tie-Up, ₹ 75 Crore Group Loan Post Board Meeting

Mumbai: 18 December 2025:Prakash Pipes Limited notified the stock exchanges on Thursday that its Board of Directors, at a meeting held today, has considered the declaration of an interim dividend of 10%, a strategic solar power acquisition with a long-term power supply agreement and an inter-corporate loan of ₹75 crores to a promoter group company. The resolutions are a combination of returns to shareholders, cost-saving and capital support at the group level.

New Delhi-based company Prakash Pipes Limited is the leading manufacturer of PVC and HDPE pipes and fittings for infrastructure, irrigation, plumbing and industrial purposes. The company has state-of-the-art manufacturing units that are spread across various states and caters to both government & private sector projects.

10% Interim Dividend Announced, Record Date is 24 December 2025.

The Board has also recommended payment of an interim dividend of 10%, equivalent to ₹1 per equity share of the face value of ₹10. 24 December 2025 has been fixed as the record date for determining the shareholders entitled to participate.

26% Stake Acquisition – 3.6 MW Solar Power Supply at Preferential Tariffs

In its pursuit to reduce energy expenses, the Board has approved the acquisition of 26% equity share capital in BECIS Solar 3 Private Limited  a special purpose vehicle incorporated on 5th May, 2025. The transaction, valued at ₹1.21 crore, is being paid in cash, and the completion is anticipated within 120 days.

Simultaneously, Prakash Pipes will enter into a long-term PPA with a 3.6MW solar power plant with the captive power supply to its Kashipur, Uttarakhand production unit. The structure is in line with the Electricity Rules, 2005, specifying a minimum equity holding by the captive users, and facilitates the company’s transition towards sourcing energy from renewable sources.

₹75 Crore ICL Sanctioned at 12% Interest to Promoter Group Company

The Board also approved an inter-corporate loan of Rs 75 cr to promoter group company Prakash Industries Limited. The loan is repayable on demand, bears interest at 12% per annum, and has a term of up to three years and is unsecured.

The proceeds are to be used for general corporate purposes of the borrower and working capital needs. It is a related party transaction but the arrangement is being executed on arm’s length basis with no special rights involved,” the company asserted.

Share Price Trend Decline 0.27% as Investors Digest Dividend and Solar Capex Announcements

Prakash Pipes Ltd share price traded in a tight range on Thursday in the wake of the Board decisions. At 12:59 pm IST, on the NSE, the share price of Prakash Pipes was trading at ₹239.71, down ₹0.66 or 0.27 per cent for the day. The counter was opened at 239.10. The company has a market cap of ₹573.35 crore, a P/E of 10.80 and a stated dividend yield of 1.00%. The 52-week range is between ₹220.32 and ₹544.80.

The recent Board decisions of Prakash Pipes incentivize immediate payouts to its shareholders and include operational cost containment over a longer period through procurement of renewable sources of energy, and also extend the structured financial support in the promoter group. These disclosures clarify the priorities for capital deployment, regulatory compliance and group financial arrangements, but do not change the basic operational profile of the company.

Source: https://nsearchives.nseindia.com/corporate/PPL_18122025114303_PPL_Outcome_of_BoardMeeting_18122025.pdf

Disclaimer: At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur. 

If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com. 

Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations