The shares of the Penny stock specializing in the manufacturing of tungsten carbide products, hit a 20 percent upper circuit following the approval of the merger of United Wolfram Pvt. Ltd. with itself.
With a market capitalization of Rs. 47.70 crores on Monday, the shares of Rapicut Carbides Limited hit a 20 percent upper circuit, making a high of Rs. 88.80 per share compared to its previous closing price of Rs. 74.00 per share.
Rapicut Carbides Limited’s Board approved the amalgamation of United Wolfram Private Limited (UWPL) with itself, subject to shareholder and regulatory approvals. The merger aims to create operational synergies by integrating UWPL’s upstream tungsten processing capabilities with RCL’s downstream product manufacturing.
Both companies serve diverse industrial sectors, including mining, automotive, and electronics. As part of the merger, RCL will issue 3.31 crore equity shares to UWPL shareholders, with no cash involved.
This move is expected to streamline operations, enhance supply chain security amid global raw material constraints, and expand market reach. Post-merger, RCL’s promoter shareholding is projected to rise from 40.46 percent to 91.69 percent. The scheme will result in UWPL being dissolved without winding up, and the new equity structure will reflect this integration.
Financials & Others
The company’s revenue declined by 38 percent from Rs. 16.94 crore to Rs. 10.49 crore in Q4FY24-25. Meanwhile, the Net profit declined from Rs. 0.53 crore to Rs. 0.33 crore during the same period.
The company has a low debt-to-equity ratio of 0.34, strong liquidity with current assets exceeding current liabilities, and the company has achieved an impressive average 3-year revenue growth of 18.52 percent.
Rapicut Carbides Limited, incorporated in 1977, is a public company based in Gujarat, India. It is one of India’s Largest manufacturers of Tungsten powder, which specializes in the manufacturing, importing, and exporting of tungsten carbide products, serving industries such as metal cutting, mining, and wear parts applications.
The company produces a wide range of tungsten carbide-based products, including wear parts (like nozzles, seals, and liners), metal cutting tools, mining products, milling inserts, TC shear blades, and cold heading pellets. These products are used in demanding sectors such as oil & gas, mining, and heavy engineering
The company has a set of marquee clients, including major names such as Steel Authority of India, NLC India, Indian Railways, National Aluminium Company, Mineral Exploration Corporation, Bharat Heavy Electricals, Northern Coalfields, Mahindra Accelo, Tata Steel, JSW Steel, United Wolfram, and Heavy Engineering Corporation.
Written by Sridhar J
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