Rama Steel Tubes Limited has informed the Exchange regarding Outcome of Acquisition and Allotment Committee of the Board of Directors of the Company held on September 23, 2025.
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Rama Steel Tubes has allotted 7,77,77,778 equity shares (face value Rs. 1 each) on a preferential basis to two non-promoter foreign funds at Rs. 11.25 per share, which includes a premium of Rs. 10.25. Ebisu Global Opportunities Fund Limited received 4,00,00,000 shares (2.44% post-issue), while Pine Oak Global Fund received 3,77,77,778 shares (2.31% post-issue), taking the combined post-issue holding of these allottees to 4.75%. The allotment was approved by shareholders via EGM on June 18, 2025, and received in-principle approval from BSE and NSE on September 8, 2025. Following this, the company's paid-up equity share capital has increased to Rs. 163,60,40,979 divided into 163,60,40,979 equity shares of Rs. 1 each. The new shares will rank equally with existing shares.
This preferential allotment dilutes existing shareholders by issuing new equity at a premium to two foreign institutional investors, raising capital for the company. Shareholders should note the ~4.75% dilution from these allottees alone, though the Rs. 10.25 premium per share signals confidence from the incoming investors.