Home/ Markets / Stock Markets/  Multibagger stock rallies 130% YTD, Board sets record date for 4:1 bonus shares
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With a market worth of Rs. 1,442.08 Cr., Rama Steel Tubes Ltd. is a small-cap company that operates in the industrial sector. The company was established in 1974 and is one of India's top producers of rigid PVC & G.I. pipes and steel pipes & tubes. The firm has an international footprint and its top export markets include the United Kingdom, United Arab Emirates, Sri Lanka, Ethiopia, Kenya, Uganda, Ghana, Kuwait, Republic of Congo, Yemen, Guyana, Germany, USA, South Africa, Zambia, and Malta. The corporation announced bonus shares in a 4:1 ratio on November 18, 2022, and the Board established a record date to ascertain the shareholders' eligibility for the aforementioned corporate action.

The company has said today in a stock exchange filing that “We wish to inform that pursuant to Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations,2015, the Board of Directors has fixed Friday January 06, 2023, as the record date, for the purpose of ascertaining the eligibility of shareholders entitled for issuance of Bonus Shares. The Bonus Shares, once allotted, shall rank pari-passu in all respects with and carry the same rights as the existing equity shares and shall be entitled to participate in full in any dividend and other corporate action, recommended and declared after the new equity shares are allotted."

As per the Board of Directors of the company, the total number of securities proposed to be issued or the total amount for which the securities will be issued is approximately Rs. 42,10,84,660/- only and the bonus shares will be issued out of credit of the share premium account of the company available on the basis of audited financial statements as at 30th September, 2022. The pre-bonus paid-up share capital is Rs. 9,12,31,165 and the post-bonus paid-up share capital is Rs. 45,61,55,825. A share premium of Rs. 42,10,84,660/- is required for implementing the bonus issue and as of 30th September, 2022, the balance of Rs. 77,16,65,705/, is available in the share premium account. The estimated date by which such bonus shares would be credited/dispatched is within 2 months from the date of Board approval i.e. by 18th January, 2023, according to the company.

The shares of Rama Steel Tubes Ltd closed today on the NSE at 163.50 apiece level, up by 2.06% from the previous close of 160.20. The stock recorded a total volume of 732,268 shares compared to the 20-Day average volume of 864,740 shares. The stock has produced a multibagger return of 1696.7% over the past three years and a multibagger return of 280.94% over the past five years. The stock has produced a multibagger return of 217.23% during the past year, and YTD, it has climbed by 129.60% in 2022.

ABOUT THE AUTHOR
Vipul Das
Vipul Das is a Digital Business Content Producer at Livemint. He previously worked for Goodreturns.in (OneIndia News) and has over 5 years of expertise in the finance and business sector. Stocks, mutual funds, personal finance, tax, and banking are among his specialties, and he is a professional in industry research and business reporting. He received his bachelor's degree from Dr. CV Raman University and also have completed Diploma in Journalism and Mass Communication (DJMC).
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Updated: 27 Dec 2022, 09:15 PM IST
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