This SME company stock has zoomed 519% in 3 months; declares bonus, split


Shares of Rhetan TMT hit a new high of Rs 469.50, up 4 per cent on the BSE in Thursday’s intra-day trade, bucking the otherwise weak trend in the market, as the company announced a bonus issue-cum- plan. The stock of company, engaged in iron & steel products business, had debuted in September 2022.

At 11:30 AM, the stock was up a per cent at Rs 454. In comparison, the S&P BSE Sensex was down 0.4 per cent at 60,823.

In the past one month, the stock has zoomed 143 per cent, as against 1 per cent decline in the S&P BSE Sensex. Further, in the past three months, the stock has skyrocketed 519 per cent, as compared to 3 per cent gain in the benchmark index. The company is engaged in manufacturing of TMT Bars and Round Bars.

The board of directors of Rhetan TMT approved split/sub-division of 1 equity share of the company having face value of Rs 10 each into 10 equity shares of the company having face value of Re 1 each. The board also approved issue of 11 bonus shares for every 4 equity shares held by the equity shareholders of the company as on ‘Record Date’.

Rhetan TMT said rationale behind the split was to enhance the liquidity of equity shares and widen the shareholders base by making the equity shares more economical to the investors.

Rhetan TMT trades in the SME segment under the ‘M’ group on the BSE only. The trading, clearing and settlement in the SME segment is done on a T+2 basis. Trades done in BSE SME scrips are required to be compulsorily settled in demat mode.

According to industry reports, the balkans TMT steel bar market was valued at $1,769 million in 2017, and is anticipated to reach $4,065 million by 2024, registering a CAGR of 12.5 per cent from 2018 to 2024. In terms of volume, this market accounted for 2,669 thousand tons in 2017, and is anticipated to reach 5,435 tons by 2024, registering a CAGR of 10.6 per cent from 2018 to 2024, the company said on market.

Thermo-mechanically treated (TMT) steel bars are high-strength reinforcement bars, which are used in construction & infrastructure projects, due to their superior strength, weldability, corrosion resistance, and other desirable properties.

The growth of the Balkans TMT steel bar market is driven by different factors such as rise in demand for low-cost reinforcement bars and surge in construction projects such as dams and bridges across the Balkans.

“Moreover, increase in government support for steel & coal production and advantages offered by TMT steel bar over torsional bars are the key factors that augment the growth of the Balkans TMT steel bar industry. However, technical restraints such as bend ability associated with high grade steel bars are expected to hamper the growth of the market. On the contrary, increase in investment by other countries such as China in Balkan metal industry is expected to provide new opportunities for the key players,” the company said in DRHP.


Source link

Comments are closed.