From Rs 3.30 to Rs 64.93 per share in just 1 year: Company gets credit facility of Rs 43.50 crore from Kotak Mahindra Bank and installed wire rod mill; details inside

From Rs 3.30 to Rs 64.93 per share, the stock gave multibagger returns of 1,868 per cent in just 1 year.

Rathi Steel and Power Limited secured a credit facility of Rs. 43.5 crore (Rs. 35 crore working capital overdraft and Rs. 8.5 crore term loan) from Kotak Mahindra Bank. This agreement allows Rathi Steel and Power Limited to access funds for day-to-day operations and specific projects. To secure the loan, Rathi Steel and Power Limited granted Kotak Mahindra Bank a first and exclusive charge on all the company's existing and future assets (movable and immovable, fixed and current) along with hypothecation of all plant and machinery at their Ghaziabad facility, a mortgage on the industrial land and building at the same location, and personal guarantees from the company's promoters, Mr Pradeep Kumar Rathi and Mr Udit Rathi.

Additionally, the company successfully began steel production on schedule this month, despite facing frequent shutdowns for preparatory activities. These shutdowns impacted production volumes and sales, but the company is now modernizing its wire rod mill to improve product quality and variety. This initiative will ultimately enhance Rathi Steel and Power Limited's capabilities in the long run.

Today, shares of Rathi Steel and Power Ltd hit a 2 per cent upper circuit to Rs 64.93 per share from its previous closing of Rs 63.66. The stock’s 52-week high is Rs 67.10 while its 52-week low is Rs 3.15. In the recent trading sessions, the stock has been hitting back-to-back upper circuits

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Established in 1971, Rathi Steel and Power Ltd, a Delhi-based steel manufacturer, offers Rebars and Wire Rods under the "RATHI" brand across 1,000 retail outlets and also supplies stainless steel products to major producers of downstream goods like Bright Bars and fasteners. Their clientele boasts esteemed names like the Airports Authority of India, Delhi Metro Rail, and NTPC. The company has a market cap of Rs 552.31 crore and positive numbers in its Quarterly Results (Q3FY24) and nine-month results (9MFY24).

The promoters of the company own a 40.32 per cent stake, DIIs own 2.53 per cent and the public owns a 57.15 per cent stake as of March 2024. From Rs 3.30 to Rs 64.93 per share, the stock gave multibagger returns of 1,868 per cent in just 1 year.

Disclaimer: The article is for informational purposes only and not investment advice.