Rama Steel stock jumps over 12% as stock trades ex-bonus. Check details

The bonus shares after their allotment will rank pari-passu in all respects and carry the same rights as the existing equity shares, the company said in its filing to the exchanges.

The company's board had on January 24 approved the issuance of bonus shares in the proportion of 2: 1.

Total number of securities proposed to be issued is worth Rs 103.61 crore. Bonus equity shares will be issued out of credit of the share premium account of the company available on the basis of the financial statements as on September 30, 2023.

The stock was trading at Rs 14.20 around 11 am, up by Rs 1.45 or 11.37%. Around 2.54 crore shares worth Rs 36.62 crore traded around this time.

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The smallcap steel pipe manufacturing company has been a market laggard over the past 12 months, falling nearly 50% during this time. Its 52-week low stands at Rs 8.82. In 2024, it has fallen a staggering 58% so far.

It is currently trading below its 50-day and 200-day simple moving averages (SMA). The stock's momentum indicator remains in the medium range with RSI and MFI as reported by Trendlyne standing at 45.3 and 51.

The company reported December quarter revenue of Rs 213 crore, down by 13.3% year-on-year (YoY) from Rs 246.183 crore. The net profit for the said period stood at Rs 6 crore which is a growth of 32.1%. The net profit in Q3FY23 stood at Rs 4.31 crore.

Rama Group is into manufacturing of steel pipes, tubes and GI Pipes. The company was established in 1974 by HL Bansal.

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