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Business News/ Markets / Stock Markets/  Indian stock market: Rama Steel shares jump 10% after issuance of 2:1 bonus shares
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Indian stock market: Rama Steel shares jump 10% after issuance of 2:1 bonus shares

Rama Steel shares traded ex-bonus on Tuesday this week to find eligible shareholders for issuance of bonus shares in a 2:1 ratio

Stock market today: Rama Steel share price today opened upside at ₹13.95 apiece and went on to touch an intraday high of ₹14.65 apiece on NSE. (Photo: HT)Premium
Stock market today: Rama Steel share price today opened upside at 13.95 apiece and went on to touch an intraday high of 14.65 apiece on NSE. (Photo: HT)

Stock market today: Shares of Rama Steel Tubes Ltd have been in an uptrend since early morning deals on Thursday. The small-cap stock with a market cap of 2,088 crore today opened upside at 13.95 apiece and went on to touch an intraday high of 14.65 apiece, logging a nearly 10 percent rise during the intraday session. The small-cap stock witnessed a spurt in volume as well. As per the information available on the BSE website, Rama Steel shares traded ex-bonus on Tuesday and bonus shares were issued in a 2:1 ratio on Wednesday. This means, two bonus shares were issued on Wednesday from the share allotment committee of the company to all those Rama Steel shareholders, who owned company shares after the end of Tuesday session this week.

Issuance of 2:1 bonus shares

Rama Steel Tubes Limited informed Indian stock market exchanges about the issuance of bonus shares saying, "Pursuant to receipt of approval of shareholders of the company through postal ballot on February 28, 2024 and after receipt of in-principle approval from National Stock Exchange of India Limited ("NSE") and BSE Limited ("BSE") vide letter no. NSE/LIST/39750 dated March 13, 2024, and letter no. LOD/Bonus/BNIP /VK/1372/2023-24 dated March OS, 2024 respectively, the Board of Directors of the Company in their meeting held today has made an allotment of 101,99,04,050 fully paid-up Bonus Equity Shares of Rs. 1/- each in the ratio 2:1 (Two) Equity Share of Rs. 1/- each for every (One) Equity Share of Rs. 1/- each held by the shareholders of the Company as on the record date (March 19, 2024), in accordance with SEBI (ICDR) Regulations, 2018 and applicable rules."

"The Board of Directors of the Company have also reserved 1,62,50,000 bonus shares for 16,25,000 number of outstanding warrants as on record date pending for conversion into equivalent number of equity shares, in the ratio of 2:1 (i.e. Two equity shares for everyone equity shares held)," Rama Steel Tubes added.

The small-cap stock is available for trade on BSE and NSE and its current market cap is 2,088 crore. Its current trade volume on NSE is 3.70 lakh and around two hours of trade is still left during Thursday deals. After price adjustment post-issuance of bonus shares in a 2:1 ratio, the 52-week high of this small-cap stock is 16.83 apiece while its 52-week low is 8.82 per share.

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ABOUT THE AUTHOR
Asit Manohar
Chief Content Producer at Live Mint Digital Team
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Published: 21 Mar 2024, 01:31 PM IST
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