If you have also bought Rama Steel Share, then you have made a profit today. In fact, the company’s shares have been trading with gains since early trading today.
Within a few hours of trading, Rama Steel shares rose by more than 17 percent. This means that investors have got a return of more than 17 percent.
At the time of writing the news, Rama Steel’s share price was up 16.35 percent to Rs 13.45 per share.
Why did Rama Steel Share rise?
There are three main reasons behind the rise in Rama Steel shares.
Investment of crores: According to the National Stock Exchange (NSE), America’s Minerva Ventures Fund has bought 1.50 crore shares of the company. Minerva Ventures Fund has invested about Rs 15 crore to buy so many shares. At the same time, Ebisu Global Opportunities Fund has bought 3 crore shares at a price of Rs 10 per share.
Bonus Shares: In the last 8 years, Rama Steel Tubes has gifted bonus shares to shareholders 3 times. In 2016, the company gave bonus stock at a ratio of 4:1. At the same time, in March this year, the company gave bonus shares at a ratio of 2:1. Now the company is giving 2 bonus shares to its shareholders on 1 share.
Step into defense sector: The company is now planning to start business in the defense sector. On 31 August 2024, the company formed its Rama Defense Private Limited unit. On September 2, the Corporate Ministry gave Certificate of Incorporation to this unit. Now this unit will import, export, manufacture, assemble and supply defense equipment, arms, ammunition, explosives, related ministry and security hardware.
Share performance
The performance of the company’s shares has been very good. The company’s stock has given a return of 29 percent in the last five sessions. However, in the last 1 year, the company has given a return of only 3 percent. According to the NSE website, the M-Cap of Rama Steel Tubes is Rs 2,045.80 crore.
