FIIs bought 76,15,502 shares of this multibagger penny stock below Rs 65: Steel stock hit upper circuit as it enters into a settlement agreement with ACRE
From Rs 3.15 to Rs 60.63 per share, the stock gave multibagger returns of 1,825 per cent returns.
Rathi Steel & Power Ltd has settled their outstanding loans with Assets Care & Reconstruction Enterprise Ltd (ACRE), which originated from availed from Bank of Baroda and State Bank of India, resolving their debt entirely. This agreement fulfils all payment obligations on Rathi Steel's part, as confirmed by ACRE.
Additionally, the company has begun modernizing its wire rod mill, aiming to improve product quality and variety. This initiative, expected to take 3-4 weeks and temporarily affect production, will ultimately enhance the company's capabilities in the long term.
Today, shares of Rathi Steel and Power Ltd were locked in a 5 per cent upper circuit to Rs 60.63 per share from its previous closing of Rs 57.75. The stock’s 52-week high is Rs 62.48 while its 52-week low is Rs 3.15. In the recent trading sessions, the stock has been hitting back-to-back upper circuits.
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 189.82 crore and positive numbers in its Quarterly Results (Q3FY24) and nine-month results (9MFY24).
According to the shareholding pattern, FIIs bought 76,15,502 or 8.95 per cent stake in the company as of February 2024. The promoters of the company own a 40.32 per cent stake, DIIs own 3.40 per cent and the public owns a 47.33 per cent stake as of February 2024. From Rs 3.15 to Rs 60.63 per share, the stock gave multibagger returns of 1,825 per cent returns.
Disclaimer: The article is for informational purposes only and not investment advice.
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