750% rally in five years! Multibagger stock jumps 13% after conversion of preferential shares

Multibagger stock: Rathi Steel & Power Limited shares jumped on Monday, March 24, as the company announced the allotment of equity shares by converting preferential shares, according to an exchange filing.

As per the data, the board of directors approved the allotment of 13,00,001 or 13 lakh equity shares with a face value of ₹10 apiece to the conversion of 15,05,265 1 per cent Optionally Convertible Redeemable Preference Shares, which were issued on February 22, 2024.

“We wish to inform your good office that the Board of Directors of Rathi Steel and Power Limited at their meeting held today, i.e., March 24, 2025, has, inter alia, considered and approved the allotment of 13,00,001 Equity Shares of face value of ₹10/- each pursuant to the conversion of 15,05,265 1% Optionally Convertible Redeemable Preference Shares,” said the company as per the BSE filing.

The filing also disclosed that the deal's conversion price was ₹55 per equity share to PCR Holdings Private Limited (Formerly Archit Securities Private Limited), an entity owned by the company's promoters.

Rathi Steel & Power's paid-up equity share capital rose to ₹86,36,30,040 or more than ₹86.36 crore, which is divided into 8,63,63,004 or 8.63 crore equity shares with a face value of ₹10 apiece.

Rathi Steel & Power Share Price

Rathi Steel & Power shares closed 13.82 per cent higher at ₹34.93 after Monday's stock market session, compared to ₹30.69 at the previous market close. The conversion of preferential shares was announced after market operating hours on March 24.

Multibagger stock Rathi Steel & Power shares have given stock market investors more than 770 per cent return on their investment in the last five years. However, the shares have lost 36.49 per cent in the last one-year period.

The iron and steel product makers' shares have gained 21.28 per cent in the last month and 24.84 per cent in the last five Indian stock market sessions.

Rathi Steel & Power stock hit its 52-week high level at ₹97.81 on July 30, 2024, while the 52-week low was at ₹24.50 on March 3, 2025, according to BSE data. The stock has rebounded from its year-low level in March 2025.

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.