Rama Steel Tubes is a small-cap company with a market capitalization of ₹ 1,509 crores. It operates in the industrial sector and is one of India’s top producers of rigid PVC & GI pipes and steel pipes & tubes. Its shares closed at ₹ 171.70 apiece on Thursday.
The company declared a 4:1 bonus issue in November this year. The company has now fixed Friday, January 06, 2023, as the record date for the purpose of ascertaining the eligibility of shareholders entitled to the issuance of bonus shares.
“The Bonus Shares, once allotted, shall rank pari-passu in all respects with and carry the same rights as the existing equity shares and shall be entitled to participate in full in any dividend and other corporate action, recommended and declared after the new equity shares are allotted,” the company said in an exchange filing. Pari-passu, here, means that the bonus shares will be on an equal footing with the existing shares.
The total amount for which the securities will be issued is approximately ₹ 42,10,84,660 and the bonus shares will be issued out of the share premium account of the company available on the basis of audited financial statements as of 30th September 2022. The company said
that the date by which such shares will be credited/ dispatched is within two months from the date of approval by the board, i.e., by January 18, 2023.
Rama Steel Tubes has given multibagger returns of 229.36% in the past year. Therefore, if an investor would have invested ₹ 1 lakh in the company’s shares one year ago, the value of their holdings would have been ₹ 3.29 lakh today!
Written by Simran Bafna
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