Rama Steel hits new high after it clocks highest-ever sales volume in Q3
Shares of Rama Steel Tubes soared 5 per cent to claim new high of Rs 185.10 in Tuesday’s intra-day trade, after the company recorded highest sales volume of 53,216.16 ton in the December quarter (Q3FY23).
The stock of steel pipes and tubes manufacturer surpassed its previous high of Rs 184.65, which it had touched on December 15, 2022. In comparison, the S&P BSE Sensex was down 0.07 per cent at 61,127 at 01:15 PM.
The sales volume for 9 month (April-December) of FY23 was 131,824.79 ton compared to 71,071.35 ton last year. In 12 months FY23, the management expects that the sales volume would further boost from commissioning and ramp-up of new capacity expansion at Khopoli Plant, Maharashtra.
In the past three months, the stock rallied 75 per cent, as against 8 per cent rise in the S&P BSE Sensex. Moreover, in the past six months, it zoomed 138 per cent, as against 16 per cent gain in the benchmark index.
On October 12, 2022, the company’s board allotted 1.625 million convertible warrants at an issue price of Rs 112.50 each (including premium of Rs 111.50) to investor Shankar Sharma on preferential basis upon receipt of 25 per cent of issue price from allottee.
“The warrants entitle the allottee to exercise an option to convert and get one equity share of face value of Re 1 each fully paid up against each warrant within 18 months from the date of allotment, on payment of the remaining 7 per cent of the issue price,” the company said.
Rama Steel Tubes focuses on business growth opportunities from government programmes like housing for all, affordable housing, smart cities, the national highway development programme, the Swachh Bharat mission, NAL Se JAL, the Jal Shakti Scheme, the RGGVY (Rajiv Gandhi Grameen Vidyutikaran Yojana), the DDUGJY (Deen Dayal Upadhyaya Gram Jyoti Yojana), etc.
Additionally, the company is in the process of entering certain specialised markets, such as the provider of steel pipes and tubes to city gas distribution and solar energy power plants.
“Favorable macro-economic conditions would increase the company’s competitiveness, given its high brand recognition, pan-India operations, diverse product offering, and wide dealer network. The long-standing relationships with clients and suppliers, in addition with ongoing capacity expansion include new product lines, which will enable the company to see stronger growth in the future,” the company added.
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