Bonus Share News: Rama Steel Tubes Ltd, a prominent Indian manufacturer of pipes, tubes, poles, and square sections, has recently made significant announcements that have caught the attention of investors. The company, established in 1974, plays a crucial role in diverse industries such as real estate, defence, telecom, irrigation, and infrastructure.
Company Key Metrics
| PE Ratio | 69.8 |
| ROCE | 15.8 % |
| ROE | 15.2 % |
| Market Capital | ₹ 2,232 Cr. |
| Dividend Yeild | 0.00 % |
Bonus Share Approval and Record Date
The Board of Directors of Rama Steel Tubes Ltd has approved bonus shares in the ratio of 2:1, indicating the issuance of 2 fully paid-up bonus equity shares of Rs 1 each for every 1 fully paid-up equity share of Rs 1 each held by the company’s members. The decision is pending the approval of members through a postal ballot. The record date to determine eligible shareholders will be communicated separately.
Authorized Share Capital Increase
In a move to support its growth trajectory, the company plans to increase its authorized share capital from Rs 55,00,00,000 to Rs. 200,00,00,000. This proposal is subject to the approval of members through a postal ballot, reflecting the company’s commitment to expansion and development.
Financial Highlights and Stock Performance
In the previous financial year 2022-2023, Rama Steel Tubes declared bonus shares in the ratio of 4:1 and executed a stock split, reducing the face value from Rs 5 to Rs 1. The company’s Quarterly Results (Q2FY24) and annual results (FY23) reported positive figures, showcasing its financial stability.
As of today, Rama Steel Tubes Ltd witnessed a surge of 1.69 per cent in its stock price, reaching Rs 46.20 per share. The stock’s 52-week high is Rs 50.50, and the 52-week low is Rs 26.10, indicating a resilient performance in the market.
Stock Performance Metrics
With a market capitalization of Rs 2,280 crore, Rama Steel Tubes Ltd boasts an impressive 3-year stock price CAGR of 130 per cent. Notably, the stock delivered multibagger returns of 220 per cent in just 2 years and an astounding 1,500 per cent returns over 3 years. Investors are advised to keep a close watch on this Small-Cap stock, given its remarkable performance and growth prospects.
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