Updated: Jul 17
Rama Steel Tubes Stock Split: The Indian stock market has given rise to a sizable number of multibagger stocks despite the pandemic crisis that is putting a strain on the world economy. One of them is shared with Rama Steel Tubes. Rama Steel Tubes Ltd., a small-cap business in the ferrous metals sector, has a market worth of Rs 659 crores. The company is a leading manufacturer of rigid PVC & G.I. pipes as well as steel pipes and tubes in India. This week, the corporation revealed the results of a split of its stock shares.
The Board of Directors of the Company had recommended the proposal to divide Equity Shares of the face value of Rs. 5 each fully paid up into Equity Shares of the face value of Re. 1 each paid up at the Record Date to be determined as authorized by the Board of Directors, the company said in a BSE filing. "This is in continuation of our earlier announcement submitted to the exchange on 17th June 2022 and 29th June 2022, We wish to inform you that the Board of Directors of the Company had recommended the
According to information found in a BSE filing, the company also announced "Acquisition of 50% shareholding of Hagar Mega Mart Private Limited by the issuance of new equity shares of Rama Steel Tubes Limited against shares subscription amount subject to the approvals of statutory authority and shareholders of the respective companies." The Rama Steel Tubes Limited will issue its shares in the form of a preferential issue by the relevant provisions of the SEBI (ICDR) Regulations, 2018.
To consider and approve the issuance of a certain number of equity shares of M/s Rama Steel Tubes Limited up to a maximum of Rs 32 crore in exchange for the purchase of a 51 percent stake in M/s Ashoka Infrasteel and a 50 percent shareholding in M/s Hagar Mega Mart Private Limited, subject to the terms and conditions that the company's board of directors may determine and at the price that may be determined by the applicable Securities and Exaccording to the SEBI (ICDR) Regulations and other applicable legislation, via postal ballot and with the permission of the relevant regulatory authorities, as the case may be," the business stated in a BSE exchange filing.
What Is A Stock Split?
A listed firm may consider splitting or subdividing its shares to lower the cost of its stock for the retail investor class. As a result, the company's investor base expands as additional people can purchase shares after the split. Therefore, shares of the company see a short-term uptick as a result of the increased new investor interest in the company.
Share Price History
The price of Rama Steel's shares dropped by 1.24 percent today to settle at Rs 390.75. The stock's NSE price has increased significantly from Rs 147.65 on July 7, 2021, to the current level, representing a multi-bagger gain of 164.65% in just one year. Year-to-date (YTD), or so far in 2022, the stock's price has increased by 9.75 percent. Rama Steel Tubes is trading above the 5-day, 20-day, 50-day, 100-day, and 200-day moving averages based on the current market price.
Rama Steel Tubes, which was founded in Delhi in 1974, has more than 50 years of expertise in the steel pipe and tube sector. Due to its 20% export rate, the company has operations in several foreign nations, including the United Kingdom, United Arab Emirates, Sri Lanka, Ethiopia, Kenya, Uganda, Ghana, Kuwait, Republic of Congo, Yemen, Guyana, South Africa, Zambia, and Malta, among others. The company has a maximum yearly capacity of 2,64,000 metric tonnes.