Rama Steel jumps ~20% as the stock trades ex-bonus

19 Mar 2024 , 01:27 PM

Rama Steel Tubes shares jumped over 20% in Tuesday afternoon session as the stock traded ex-bonus in relation to its 2:1 bonus issuance.

The business has designated today as the record date for determining which stockholders are qualified to receive the bonus shares.

The bonus shares, once allotted, will rank pari passu in all respects and have the same rights as existing equity shares, according to the company’s registration with the markets. On January 24, the company’s board approved the issuing of 2:1 bonus shares.

The total value of securities planned to be offered is ₹103.61 Crore. Bonus equity shares will be granted from the company’s share premium account, as shown in the financial statements as of September 30, 2023.

At around 1.17 PM, Rama Steel was trading 19.22% higher at ₹15.20, against the previous close of ₹12.75 on NSE. The counter jumped to an intraday high of ₹15.30.

The smallcap steel pipe manufacturing firm has been a market laggard over the past year, plunging roughly 50%. Its 52-week low is ₹8.82. It has already decreased by 58% in 2024.

It is now trading below the 50-day and 200-day simple moving averages (SMAs). The stock’s momentum indicator stays in the medium zone, with Trendlyne reporting RSI and MFI values of 45.3 and 51, respectively.

The firm recorded sales of ₹213 Crore in the December quarter, a 13.3% decrease from ₹246.183 Crore in the same period last year. The net profit for the period was ₹6 Crore, representing a 32.1% increase. The net profit in Q3FY23 was ₹4.31 Crore.

For feedback and suggestions, write to us at [e-mail]