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Rama Steel shares jump more than 12% as the stock trades ex-bonus. Check details

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Rama Steel Tubes shares jumped more than 12% on Tuesday as the stock traded ex-bonus versus its 2:1 bonus issue.

The company also set the record date today to determine the shareholders eligible for bonus shares.

The bonus shares after their allotment will rank pari-passu in all respects and will carry the same rights as existing equity shares, the company said in its filing with the stock exchanges.

The company’s board of directors had on January 24 approved the issue of bonus shares in a ratio of 2:1.

The total number of securities offered for issue is worth Rs 103.61 crore. The free capital shares will be issued to the credit of the company’s share premium account available on the basis of the accounts as of September 30, 2023.

The stock was trading at Rs 14.20 around 11 am, up Rs 1.45 or 11.37 per cent. Around 2.54 crore shares worth Rs 36.62 crore were traded at that time. Also read: Sensex falls 600 points: 5 key factors behind bear attack on D-StreetThe small-cap steel tube manufacturing company has lagged the market over the past 12 months, falling nearly 50% during that time. Its 52-week low stands at Rs 8.82. In 2024, it has so far fallen by 58%.

It is currently trading below its 50-day and 200-day simple moving averages (SMA). The stock’s momentum indicator remains in the mid-range, with the RSI and MFI reported by Trendlyne standing at 45.3 and 51.

The company reported revenue for the quarter of Rs 213 crore, down 13.3 per cent year-on-year (y-o-y) from Rs 246,183 crore. Net profit for the said period stood at Rs 6 crore, a growth of 32.1%. Net profit in the third quarter of FY23 stood at Rs 4.31 crore.

Rama Group is engaged in the manufacturing of steel pipes, tubes and GI pipes. The company was established in 1974 by HL Bansal.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

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