With a market cap of Rs. 659 crores, Rama Steel Tubes Limited is a small-cap company dealing in the ferrous metals industry. The company is one of India’s top producers of rigid PVC and GI pipes and steel pipes and tubes. The firm has overseas presence in countries like United Kingdom, United Arab Emirates, Sri Lanka, Ethiopia, Kenya, Uganda, Ghana, Kuwait, Republic of Congo, Yemen, Guyana, Germany, USA, South Africa, Zambia and Malta. Thanks to its 20 percent export rate, among others. The firm can produce up to 2,64,000 metric tons annually. The company has announced the divestment of its equity shares, which it unveiled yesterday.
The company said in a BSE filing that “This is in continuation of our earlier announcement submitted to the Exchange on June 17, 2022 and June 29, 2022, we would like to inform you that the Board of Directors of the company had recommended the proposal of sub – Split of an equity share of face value of Rs.5/- each fully paid-up equity share of face value of Rs.1/- each fully paid-up on the record date, to be sent by postal Authorized by the Board of Directors after approval of the shareholders through ballot.
According to data available on the BSE filing, the company also announced acquisition of 50% shareholding of Hagar Mega Mart Pvt Ltd by issuing fresh equity shares of Rama Steel Tubes Ltd against the subscription amount of shares “subject to the statutory authority and approval of the shareholders” The issue of shares of the concerned companies. Rama Steel Tubes Limited shall be in the form of preferential issue of shares and shall be in compliance with the applicable provisions of SEBI (ICDR) Regulations, 2018.
“Acquisition of 50% shareholding of Hagar Mega Mart Pvt Ltd by issue of fresh equity shares of Rama Steel Tubes Ltd. against subscription amount of shares subject to the approval of the statutory authority and shareholders of the respective companies. Issue of shares of Rama Steel Tubes Ltd. Shares would be in the form of a preferential issue of Rs.
To consider and approve the issue of equity shares of M/s Rama Steel Tubes Limited up to a maximum amount of Rs. 32 crore against acquisition of 51% stake in M/s Ashoka Infrasteel and 50% stake of M/s Hagar Mega Mart Pvt Ltd, subject to such terms and conditions as may be prescribed by the Board of Directors of the company and at such price as and the Board of Exchange (Issue of Capital and Disclosure Requirements) Regulations, 2018 as may be prescribed and subject to the approval of the shareholders of the company through postal ballot and approval of applicable regulatory authorities, as the case may be, SEBI ( ICDR) Regulations and other applicable laws,” the company said in a BSE exchange filing.
Rama Steel shares closed at today’s level 390.75 level, down 1.24% from its previous close. Rise in NSE stock 147.65 at the current level on 7 July 2021, a multibagger profit of 164.65 per cent in the same year. The stock has gained 9.75 percent in price year-to-date (YTD) or so far in 2022. Based on current market price, Rama Steel Tube is trading above 5 Day, 20-Day, 50-Day, 100-Day. -day, and the 200-day moving average.