Promoters bought 25,00,000 shares of this multibagger penny stock under Rs 50 with 1,400 per cent returns; Board announced bonus shares – record date inside!

The stock gave multibagger returns of over 1,400 per cent returns in 3 years where as BSE Sensex Index is up by 45 per cent.

Rama Steel Tubes Ltd that the meeting of the Board of Directors of the company approved bonus shares in the ratio of 2:1 i.e., 2 fully paid-up bonus equity shares of Rs 1 each for every 1 fully paid-up equity share of Rs 1 each held by the members of the company as on the record date, subject to approval of members of the company through postal ballot. The company fixed the rec record date for bonus shares as Tuesday, March 19, 2024. Increase in the authorised share capital of the company from Rs 55,00,00,000 to Rs. 200,00,00,000 subject to the approval of members of the company through postal ballot.

Additionally, Rama Steel Tubes Limited has decided to sell its entire 50 per cent stake (1.25 crore shares) in Hager Mega Mart Private Limited (HMMPL). This decision was approved by the Company's Board of Directors. The sale will be completed in two parts: 31.2 per cent stake will be sold to Luv Gupta and Vikas Gupta for Rs 5 crore, and the remaining 18.8 per cent will be divested in the future. The sale is expected to be completed within 3 months and is considered an arm's length transaction with no involvement from the promoter group.

Furthermore, the promoters of the company bought 25,00,000 shares and increased their stake to 57.22 per cent in December 2023 compared to 57.14 per cent in September 2023.

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.

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. In its Quarterly Results (Q2FY24) and annual results (FY23), the company reported positive numbers.

Today, shares of Rama Steel Tubes Ltd plunged 5.33 per cent to Rs 38.75 per share with an intraday high of Rs 41.25 and an intraday low of Rs 38.52. The stock’s 52-week high is Rs 50.50 and its 52-week low is Rs 26.10

The company have a market cap of Rs 1,910 crore with a 3-year stock price CAGR of 120 per cent. The stock gave multibagger returns of over 1,400 per cent returns in 3 years where as BSE Sensex Index is up by 45 per cent. Investors should keep an eye on this stock.

Disclaimer: The article is for informational purposes only and not investment advice.