Debt-Free Penny Stock Under 10 Jumps Over 10 Per Cent From Intraday Low; Board Allotted 4,79,51,400 Rights Equity Shares
The company has a market cap of over Rs 50 crore and as of June 2024, it is debt-free.
On Tuesday, one of the Top Gainers on BSE, shares of SRU Steels Ltd jumped over 10 per cent to Rs 8.75 per share from its previous closing of Rs 8.11. The shares of the company saw a spurt in volume by more than 1.01 times. The stock’s 52-week high is Rs 15.20 and its 52-week low is Rs 7.55.
The Rights Issue Committee and Board of Directors of SRU Steels Limited approved the allotment of 4,79,51,400 Rights Equity Shares at Rs 10 per share on September 30, 2024. This follows the Letter of Offer dated August 27, 2024, and the Basis of Allotment finalized with BSE Limited. The allotment increases the Company's paid-up equity share capital to Rs 47,95,14,000.
SRU Steels Ltd was established in 1995 as a trading company specializing 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.
DSIJ's ‘Penny Pick’ service provides research-backed penny stock recommendations below Rs. 100. If this interests you, do download the service details here.
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 over Rs 50 crore and as of June 2024, it is debt-free. In its Quarterly Results (Q1FY25) and annual results (FY24), the company reported mixed sets of numbers. Investors should keep an eye on this micro-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.