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Rama Steel Tubes Ltd. Board consents to issue convertible warrants as Company looks to raise funds

Posted on April 22, 2022 by Hi Gujarat Webdesk

Eriska Investment Fund Picks up stake

New Delhi (India), April 22: Rama Steel Tubes Limited (RSTL) (BSE: 539309, NSE: RAMASTEEL) is a pioneer and leading manufacturer in the steel tube industry. The company has announced that the board of the company has consented to raise funds by issuance of fully convertible warrants, convertible in to equity shares to the specified people in the promoter and non-promoter group. The company will issue 34,35,000 convertible warrants, each carrying a right exercisable by warrant holder to subscribe to one (1) equity share against each warrant at a price to be determined later. The company will take shareholders’ approval for the issuance of the fully convertible warrants.

Further, as per bulk deal data available on NSE, Eriska Investment Fund Ltd. picked up 100,000 shares of Rama Steel Tubes Ltd. at an average price of Rs. 430 on 20 April 2022.

Earlier in January, the company had inked exclusive arrangement for supply of specialty steel SKUs in Nigeria, West Africa, through RST Industries Ltd. (a stepdown subsidiary of RSTL). RST industriesLtd., Nigeria signed annual contract with Huihai Group Ltd, Hong Kong where RST industries Ltd will have an exclusive arrangement for supply of specialty steel SKUs of – 15,000 MT per annum in Nigeria.

RSTL has been continuously striving to improve its performance by increasing sales, share of value-added products, innovating new products and aggressive cost optimization on a continual basis. RSTL products range includes MS ERW black pipes from 15mm to 200mm diameter pipes confirming to IS: 1239, IS:1161, IS:3589, IS:3601, & IS:4270 and G.I. Pipes from 15mm to I-50mm NB in light, medium and heavy sizes. RSTL has 20% exports rate, with a global presence in more than 15 Countries.

RSTL has a subsidiary in UAE and a step-down subsidiary in Nigeria which has strengthened the company/s presence in global markets. RSTL has the world’s latest technology, plant and machinery, which also includes sophisticated testing equipment. RSTL has 4 state-of-art manufacturing capabilities located at Sahibabad (U.P.), Khopoli (Maharashtra) and Anantpur (Andhra Pradesh) and has got strong distributor network spread across lndia.

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