Rama Steel Tubes Stock Split: Despite the pandemic’s pressure on the global economy, Indian stock market has produced a good number of multibagger stocks. Rama Steel Tubes shares One of them. With a market cap of Rs 659 crores, Rama Steel Tubes Limited is a small-cap company dealing in Ferrous Metals Industry. The company is one of India’s top producers of rigid PVC and GI pipes and steel pipes and tubes. The company has announced the split of its equity shares, which it unveiled this week.
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 a proposal of Rs. Sub-division of equity shares of face value of Rs.5/- each fully paid-up into equity shares of face value of Rs.1/- each fully paid-up on the record date, to be made through postal ballot The medium is authorized by the Board of Directors after the approval of the shareholders.
According to data available on BSE filings, the company has also announced acquisition of 50 per cent 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 approval of the statutory authority”. Shareholders of the respective companies. The issue of shares of 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.
“Consider and approve the issue of such number of equity shares of M/s Rama Steel Tubes Ltd., against acquisition of 51 per cent stake in M/s Ashoka Infrasteel and 50 per cent stake in M/s. M/s. Private Limited is subject to such terms and conditions as may be prescribed by the Board of Directors of the Company and at such price as may be determined in accordance with the applicable provisions of the Securities and Exchange Board. India (Issue of Capital and Disclosure Requirements) Regulations 2018 and SEBI (ICDR) Regulations and other applicable laws, subject to the approval of the shareholders of the company through postal ballot and approval of applicable regulatory authorities, as the case may be,” the company said. said in a BSE exchange filing.
What is Stock Split?
A split or sub-division of shares is considered by a listed company to make its shares more affordable for the retail investor segment. As a result, as more investors can enter the stock after the split, the investor base in the company grows. Hence, as there is interest from new investors in the firm, the shares of the entity may see a rise in the short term.
stock price history
The stock of Rama Steel today closed at Rs 390.75, down 1.24 per cent from its previous close. The stock rose from Rs 147.65 on NSE to current levels on July 07, 2021, a one-year multibagger gain of 164.65 per cent. The stock has gained 9.75 percent year-to-date (YTD) or 9.75 percent in price 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.
Rama Steel Tubes incorporated in the year 1974 in Delhi has vast experience of more than five decades in the industry of Steel Pipes & 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.