Debt-free penny stock under Rs 10 hit upper circuit; Board likely to raise funds by way of issue of equity shares, convertible instruments or other securities
The stock is up by 41.33 per cent from its 52-week low of Rs 5.71 per share.
On Thursday, one of the Top Gainers on BSE, shares of SRU Steels Ltd hit a 5 per cent upper circuit to Rs 8.07 per share from its previous closing of Rs 7.69 per share. The stock’s 52-week high is Rs 15.20 and its 52-week low is Rs 5.71. The stock is up by 41.33 per cent from its 52-week low of Rs 5.71 per share.
SRU Steels Limited has scheduled a Board of Directors meeting on Monday, January 13, 2025, at their registered office in Delhi. The primary agenda of this meeting is to discuss and approve a plan to augment the company's financial resources. This may involve raising funds through various means, including the issuance of equity shares, convertible instruments, or other securities. The company may explore options such as preferential allotments, right issues, qualified institutional placements (QIPs), American Depository Receipts (ADRs), Global Depository Receipts (GDRs), Foreign Currency Convertible Bonds (FCCBs), or any other suitable method or combination thereof, potentially across multiple tranches.
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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.
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 Rs 48.37 crore and as of June 2024, it is debt-free. In its Quarterly Results (Q2FY25) 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.