Rama Steel Tubes Limited has informed the Exchange regarding a revised press release dated Jun 05, 2025, titled "Media Release / Press Release, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.".
RAMASTEEL · price
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Rama Steel Tubes Limited (RSTL) is stepping into the renewable energy space by taking a 10% equity stake in Onix IPP, a special purpose vehicle running a 225 MW solar power project in Maharashtra under the government's PM-KUSUM scheme. The project has already signed 25-year Power Purchase Agreements with MSEDCL at a fixed tariff of ₹3.04 per unit. The full project is expected to generate around ₹1,081 million in annual revenue, with RSTL's share at roughly ₹108 million per year, totalling about ₹2,703 million over 25 years. This is RSTL's first major diversification beyond its core steel tubes business, which it has run since 1974, and is being positioned as an ESG-aligned move with long-term locked-in returns.
Shareholders get a new long-term revenue stream backed by a government scheme and fixed-tariff power purchase agreements for 25 years, reducing dependence on the cyclical steel tubes business. The annual contribution to RSTL is modest initially (around ₹10-11 crore per year), so this is more of a strategic diversification and growth optionality story than an immediate earnings booster.