Rama Steel Tubes Limited has informed regarding Preferential Issue of Equity Shares.
RAMASTEEL · price
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The board of Rama Steel Tubes approved a preferential issue of up to 15.76 crore equity shares at Rs 11.25 per share (including Rs 10.25 premium), raising up to Rs 177.30 crore. The shares are proposed to be allotted to four non-promoter foreign funds — North Star Opportunities Fund, Ebisu Global Opportunities Fund, Nova Global Opportunities Fund, and Pine Oak Global Fund — with each getting roughly 2.2% of the post-issue diluted capital. Separately, the board approved an alteration to the company's Memorandum of Association to add a new main object covering renewable energy and solar power (IPP and EPC) business. An Extraordinary General Meeting has been scheduled on June 18, 2025, to seek shareholder approval for both items.
Existing shareholders will face dilution of roughly 9% on a fully diluted basis once the preferential shares are allotted. The fundraise strengthens the balance sheet for working capital and growth, while the planned entry into solar/renewable energy signals a strategic diversification beyond the core steel tubes business, which could reshape the company's long-term growth profile.