Shares of Rama Steel Tubes are locked at a 10% cap at Rs 38.15 per share on BSE at 9:39 am as the stock becomes ex-date for bonus issue at a 4:1 ratio, meaning four bonus shares registered for each share per day.

The Company’s Board of Directors has set Friday, January 6, 2023, as the record date for determining the eligibility of shareholders entitled to issue bonus shares.

The exchange data showed a total of 2.22 lakh shares changed hands on the NSE and BSE, with 2.36 million shares pending purchase.

Shares of the steel products company hit record highs. Shares in the company have risen 15% in the past week after the company posted its highest sales of 53,216.16 tonnes in the December quarter (third quarter of fiscal 2023). In contrast, the S&P BSE Sensex fell nearly 1% for the week.

Meanwhile, the company had earlier approved the split of the company’s shareholding from Rs 5 per share to Re 1 per share, effective from August 25, 2022.

The stock has rallied 74% over the past three months, compared with a 4% gain for the S&P BSE Sensex. Plus, it’s up 142% over the past six months, compared with the benchmark index’s gain of 12.5%.

On October 12, 2022, the company’s board allotted 1.625 million convertible warrants at the issue price of Rs 112.50 (including a premium of Rs 111.50) to investor Shankar Sharma on a preferential basis, receiving 25% from the allotment.

Rama Steel Tubes is principally engaged in manufacturing and trading steel and steel pipes and galvanised iron pipes in India and globally. The company is focusing on business growth opportunities in government programs like Housing for All, Affordable Housing, Smart City, National Highway Development Programme, Swachh Bharat Mission, NAL Se JAL, Jal Shakti Programme, RGGVY (Rajiv Gandhi Grameen Vidyutikaran Yojana), DDUGJY (Deen Dayal Upadhyaya Gram Jyoti Yojana) etc.

In addition, the company is entering specific specialised markets, such as suppliers of steel pipes and steel pipes for city gas pipelines and solar power plants.

Rama Steel Tubes has a diversified product portfolio, including various tubes such as black pipe, galvanised pipe, telecommunication tower and substation structures, cold rolled coil and plate, and structural engineering products. Due to the increase in production capacity, the sales volume also increased significantly during the year.

On January 4, 2023, ICRA assigned an ICRA BBB rating to Rama Steel Tubes’ instruments with a stable outlook.