2:1 Bonus share & promoters trimmed stake: Board approved raising of funds up to Rs 500 crore by way of a further public offer; details inside
The stock gave multibagger returns of over 1,300 per cent returns in 3 years whereas BSE Sensex Index is up by 54 per cent.
Rama Steel Tubes Ltd held a board meeting on April 22, 2024, and informed their stakeholders that they plan to raise funds up to Rs 500 crore by issuing new Equity Shares through a further public offer. This is subject to approval from shareholders and any other regulatory requirements. The Board also reconstituted and empowered a Fund-Raising Committee to oversee the issuance process, including selecting advisors and completing the necessary steps for the public offering.
Earlier, the company distributed bonus shares to shareholders in a 2:1 ratio on the record date of March 19, 2024. Additionally, the company's board approved the sale of its entire 50 per cent stake (1.25 crore shares) in Hager Mega Mart Private Limited (HMMPL) to be completed in two parts: 31.2 per cent to Luv Gupta and Vikas Gupta for Rs 5 crore and the remaining 18.8 per cent to be divested in the future. The sale is expected to be finalized within 3 months and is considered an arm's length transaction with no involvement from the promoter.
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Established in 1974, Rama Steel Tubes stands as a leading Indian manufacturer of black and galvanized pipes, tubes, poles, and square sections, catering to diverse industries like real estate, defence, telecom, irrigation, and infrastructure.
Today, shares of Rama Steel Tubes Ltd surged 6.07 per cent to Rs 13.63 per share with an intraday high of Rs 13.80 and an intraday low of Rs 13.31. The stock’s 52-week high is Rs 16.82 and its 52-week low is Rs 9.97. As of March 2024, the promoters decreased their stake to 56.7 per cent compared to 57.22 per cent in December 2023.
The company have a market cap of over Rs 2,000 crore with a 3-year stock price CAGR of 143 per cent. The stock gave multibagger returns of over 1,300 per cent returns in 3 years whereas BSE Sensex Index is up by 54 per cent. Investors should keep an eye on this stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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