Rama Steel Tubes Limited has informed the Exchange about the Allotment of 7,77,77,778 equity shares on preferential basis.
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Rama Steel Tubes has allotted 7.77 crore equity shares (face value Rs. 1 each) on a preferential basis at Rs. 11.25 per share, which includes a premium of Rs. 10.25 over face value. The shares were allotted to two foreign funds — Ebisu Global Opportunities Fund Limited (4 crore shares) and Pine Oak Global Fund (3.77 crore shares), both classified as Non-Promoters. The total capital raised is approximately Rs. 87.5 crore. Following this allotment, the company's paid-up equity share capital has increased to Rs. 163.60 crore (163,60,40,979 shares). Shareholder approval for the issue was received at an EGM on June 18, 2025, and in-principle approval from BSE and NSE was received on September 8, 2025.
This preferential allotment brings in roughly Rs. 87.5 crore from foreign institutional investors, which will strengthen the company's balance sheet for growth or debt reduction. However, existing shareholders will see dilution, with the two allottees collectively holding about 4.75% of the expanded share capital.