Rama Steel Surges 42% on Onix Partnership

6 Sep 2024 , 11:18 AM

Rama Steel Tubes (RSTL) shares have risen 42% in two days, touching an all-time high of Rs 16.82 on the BSE, after the business announced a strategic partnership with Onix Renewable for green and renewable energy.

Today’s session saw the shares reach a high of Rs 16.50, falling only Rs 0.32 short of its all-time high. In Thursday’s session, the stock jumped 20% to reach its upper circuit limit.

“Rama Steel Tubes Limited (RSTL) is delighted to announce a strategic relationship with Onix Renewable Ltd. This partnership will focus on leveraging RAMA Steel Tubes Ltd’s expertise to provide steel structures as well as single-axis trackers, with a future focus on dual-axis trackers that will be essential for solar projects undertaken by Onix Renewable Ltd,” the company stated in a filing to the exchanges.

This agreement represents RSTL’s introduction into the green energy sector. The company has broadened its expertise by creating specialised steel structures and tracker tubes that will serve as the foundation for greenfield solar installations.

“Richi Bansal, WTD & CEO, looked forward to helping to improve the structural integrity and performance of your projects. The beneficial impact on our EBITA and the establishment of RSTL’s position in the renewable energy industry underscore the benefits of this collaboration,” according to the filing.

The quality and endurance of the steel structures are important to the long-term viability and efficiency of these solar installations.

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