Multibagger Penny Stock Under Rs 40 Jumps After The Allotment Of 13,00,001 Shares From The Conversion Of 15,05,265 OCRPS
The stock gave multibagger returns of over 1,500 per cent in 5 years.
Today, shares of Rathi Steel and Power Ltd jumped 3.8 per cent to Rs 36.25 per share from its previous closing of Rs 34.93 per share. The stock’s 52-week high is Rs 97.81 per share while its 52-week low is Rs 24.50 per share.
The Board of Directors of Rathi Steel and Power Limited, in their meeting on March 24, 2025, approved the allotment of 13,00,001 equity shares, each with a face value of Rs 10, resulting from the conversion of 15,05,265 1 per cent Optionally Convertible Redeemable Preference Shares (OCRPS) issued on February 22, 2024, at a conversion price of Rs 55 per equity share to PCR Holdings Private Limited (formerly Archit Securities Private Limited), a Promoter & Promoter Group entity, through a preferential allotment via private placement; consequently, the company's paid-up equity share capital has increased to Rs 86,36,30,040, divided into 8,63,63,004 equity shares of Rs 10 each.
Additionally, Rathi Steel promoter, PCR Holdings Pvt Ltd (formerly Archit Securities Pvt Ltd), has acquired a total of 70,000 equity shares in Rathi Steel and Power Limited across two transactions: 45,000 shares on March 21, 2025, increasing their holding by 0.21 per cent, and 25,000 shares on March 20, 2025, increasing their holding by 0.12 per cent.
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About the Company
Incorporated in 1971, Rathi Steel and Power Limited manufactures and supplies steel and steel-related products. The company specializes in stainless steel products like Wire Rods, flats etc., which are primarily used in infrastructure, engineering, and household applications. Rathi operates a plant in Ghaziabad, UP, with an installed capacity of 2,00,000 tons per annum or rolling capacity. The Company also operates a steel melting shop with an installed capacity of over 90,000 tons per annum to manufacture stainless steel billets.
According to Quarterly Results, the net sales increased by 3.2 per cent to Rs 104.43 crore and the net profit decreased by 32 per cent to Rs 0.79 crore in Q3FY25 compared to Q3FY24. In its nine-month results, the net sales decreased by 6 per cent to Rs 353.59 crore and the net profit increased by 199 per cent to Rs 10.16 crore in 9MFY25 compared to 9MFY24
The promoters of the company own a 40.32 per cent stake, FIIs own 8.94 per cent, DIIs own 2.53 per cent and the public owns a 48.22 per cent stake as of December 2024. The stock gave multibagger returns of over 1,500 per cent in 5 years. Investors should keep an eye on this micro-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.