Rama Steel Tubes Approves ₹500 Crore FPO, Stock Price Surges 6%

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Synopsis:

Shares of Rama Steel Tubes surged 6% as the company's board approved raising funds through a further issue of equity shares worth up to ₹500 crore. The stock closed at ₹13.63 on April 23 with a market cap of ₹2,017 crore. It has witnessed a 36% gain in the past year and a 13% increase since the start of this year.

The board of directors of Rama Steel Tubes greenlighted the move to raise funds of up to ₹500 crore via a further public offer, propelling the stock to reach a high of ₹13.80 on the BSE. The market cap of the firm climbed to ₹2,017 crore, with the stock eventually closing 6.07% higher at ₹13.63.

Historical Performance and Technical Analysis

This decision comes amid the company's notable market performance, with a 36% gain in the past year and a 13% increase since the start of the current year. Rama Steel Tubes has demonstrated substantial growth over three and five years, rising by 1334.74% and 887.685% respectively.

Despite experiencing fluctuations, including hitting a 52-week low of ₹9.97 in April 2023, the stock rebounded to a 52-week high of ₹16.82 in January 2024. Additionally, with a beta of 0.7, the stock exhibits low volatility, as indicated by the Relative Strength Index (RSI) standing at 47.4, suggesting balanced trading conditions.

About Rama Steel Tubes

Rama Steel Tubes Limited is an India-based company that specialises in manufacturing and exporting electric resistance weld (ERW) steel tubes in both black and galvanised variants. The company also produces and trades other steel products, including telecommunication transmission towers, substation structures, structural steel products, and coils and sheets.

Additional Read:  Share Market News

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