500 per cent multibagger returns in this penny stock below Rs 50; Board approved preferential issue and allotment of up to 3,55,70,522 shares to non-promoters!

The stock is up by 50 per cent in 3 months and gave multibagger returns of over 500 per cent in 6 months.

Today, shares of Rathi Steel and Power Ltd were locked in a 2 per cent upper circuit to Rs 41.07 per share from its previous closing of Rs 40.27. The stock also made a fresh 52-week high of Rs 41.07 per share. In the recent trading sessions, the stock has been hitting back-to-back upper circuits and 52-week highs. 

Established in 1971, Rathi Steel and Power Ltd, a Delhi-based steel manufacturer, offers Rebars and Wire Rods under the "RATHI" brand across 1,000 retail outlets and also supplies stainless steel products to major producers of downstream goods like Bright Bars and fasteners. Their clientele boasts esteemed names like the Airports Authority of India, Delhi Metro Rail, and NTPC.

The Board of Directors of the company considered and approved the issue and allotment of up to 3,55,70,522 equity shares of the face value of Rs 10 each to persons belonging to the non-promoter category, on a preferential basis, at Rs 32.25 for cash.

The company has a market cap of Rs 128.58 crore and has delivered good profit growth of 18.4 per cent CAGR over the last 5 years. In its Quarterly Results and annual results, the company reported positive numbers.

The stock is up by 50 per cent in 3 months and gave multibagger returns of over 500 per cent in 6 months. Investors should keep an eye on this micro-cap stock.

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