Debt-Free Penny Stock Below Rs 5: Company Seeking Approval for Rs 200,00,00,000 for Authorisation for Loans & Guarantees
The company has a market cap of Rs 28 crore and as of December 2024, it is debt-free.
On Monday, shares of SRU Steels Ltd gained 2.6 per cent to Rs 4.78 per share from its previous closing of Rs 4.66 per share. The stock’s 52-week high is Rs 15.20 and its 52-week low is Rs 3.61. The stock is up by 32.4 per cent from its 52-week low of Rs 3.61 per share.
The resolutions proposed for SRU Steels Limited seek shareholder approval to authorise the company, under Sections 185 and 186 of the Companies Act, 2013, to provide financial assistance. This includes advancing loans, issuing guarantees, letters of comfort or support, or providing security for loans availed by individuals in whom the company's directors have an interest. Additionally, the company seeks authorisation to make investments, grant loans, or provide guarantees or security in connection with loans under Section 186. Both authorisations are capped at a total borrowing limit that will not exceed Rs 200,00,00,000 (Rupees Two Hundred Crore Only).
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SRU Steels Ltd was established in 1995 as a trading company specialising in stainless steel products. Initially operating as a consignment agent, the company expanded its business to include direct sales of various types of steel products, including stainless, mild, steel coils, sheets, and carbon iron steel. SRU Steels also acts as a commission agent for selling products on behalf of other companies. The company's strategic plan involves increasing its direct sales to customers while maintaining its consignment sales business.
With a Jindal Steel & Power Limited franchisee, SRU Steels has a strong presence in the steel market. Currently operating in Delhi and Ahmedabad, the company sources its raw materials from reputable suppliers like Jindal Steel Limited and Steel Authority of India Limited. SRU Steels' product portfolio includes a wide range of stainless steel items, such as sheets, PVC-coated sheets, checkered sheets, coils, pipe fittings, rods, angles, channels, round tubes, and flat bars.
The company has a market cap of Rs 28 crore and as of December 2024, it is debt-free. Investors should keep an eye on this micro-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.