Rama Steel Tubes Limited has informed the Exchange regarding Outcome of Board Meeting held on Wednesday, May 21, 2025.
RAMASTEEL · price
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Rama Steel Tubes' Board, at its May 21, 2025 meeting, approved issuing up to 15.76 crore equity shares on a preferential basis to non-promoter investors at Rs 11.25 per share (including Rs 10.25 premium), raising up to Rs 177.30 crore. The allottees are four foreign funds: North Star Opportunities Fund, Ebisu Global Opportunities Fund, Nova Global Opportunities Fund (Touchstone), and Pine Oak Global Fund, each receiving roughly 2.2-2.6% of post-issue diluted equity. The Board also approved amending the Main Object Clause of the MOA to add renewable energy and solar power (IPP and EPC) as new business activities. An Extraordinary General Meeting has been scheduled for June 18, 2025 to seek shareholder approval for these proposals. M/s Arun Kumar Gupta & Associates has been appointed as scrutinizer for the EGM.
Existing shareholders will face notable equity dilution (over 15.76 crore new shares being issued), but the company will receive Rs 177.30 crore of fresh capital and gain exposure to the renewable energy sector, which could support long-term growth. Near-term, the stock may see pressure due to the dilutive issue at a price (Rs 11.25) likely below market, though the entry of institutional foreign funds signals outside confidence in the company's direction.