Multibagger penny stock under Rs 40: This micro-cap company announces capex plan of approx. Rs 250,00,00,000!
The stock gave multibagger returns of 250 per cent in just 2 years and over 1,970 per cent returns in 3 years.
Rama Steel Tubes Ltd informed that the Board of Directors of the company approved the proposal for setting up of plant at Raipur, Chhattisgarh, which will have an annual production capacity of up to 2,00,000 MT and a total capex requirement for the setting up of said projects shall be around Rs 250,00,00,000.
Setting up a new plant at Raipur, Chhattisgarh is to expand the company's footprint in the eastern part of India to manufacture ERW black pipe, HOT DIP galvanising, solar structure, cold rolling line, continuous galvanising line etc. This will enable our company to expand its businesses to cater for the demand for its products in the eastern part of India.
Additionally, the Board of Directors of the company approved the proposal for fundraising for an amount not exceeding Rs 500 crore through a rights issue/QIP placement etc.
As per bulk deal data available on BSE, Societe Generale, a Foreign Institutional Investor (FII) picked up 60,00,000 shares in Rama Steel Tubes on July 18, 2023, at an average price of Rs 38.17 per share aggregating to Rs 22.90 crore.
On Friday, shares of Rama Steel Tubes Ltd plunged 1.72 per cent to Rs 36.02 per share with an intraday high of Rs 37.13 and an intraday low of Rs 35.70.
In the previous financial year 2022-2023, the company had declared bonus shares in the ratio 4:1 and stock split from a face value of Rs 5 to a face value of Rs 1. The stock split record date was August 28, 2022, and the bonus shares record date was January 06, 2023.
The company have a market cap of Rs 1,777 crore with a 3-year stock price CAGR of 177 per cent. The stock gave multibagger returns of 250 per cent in just 2 years and over 1,970 per cent returns in 3 years. Investors should keep an eye on this Small-Cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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