Rama Steel Tubes Limited has informed the Exchange regarding the Amendment to AOA/MOA of the company.
RAMASTEEL · price
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The Board of Rama Steel Tubes, at its meeting on May 21, 2025, approved issuing up to 15,76,00,000 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, and Pine Oak Global Fund, each receiving between 2.18% and 2.59% on a fully diluted basis. The Board also approved amending the Object Clause of the Memorandum of Association to add a new sub-clause enabling the company to enter the renewable energy business, specifically solar power — Independent Power Production (IPP), EPC of solar projects, and strategic investments in clean energy. An Extraordinary General Meeting has been scheduled for June 18, 2025 to seek shareholder approval for both the fundraise and the MOA amendment.
This is a major dilution event for existing shareholders — the proposed issuance of 15.76 crore shares is roughly comparable to the company's existing share base, meaning existing equity holders could see their stake significantly reduced. The entry into solar IPP and EPC marks a notable diversification away from the core steel tubes business, with the new capital likely funding this renewable energy push. Investors should watch for the EGM outcome on June 18, 2025 and assess how the new solar business fits with the existing steel operations.