Small-Cap Stock Rathi Steel Surges 5% After ₹50 Crore Project Announcement! See Why Investors Are Excited

Shares of Rathi Steel and Power, a small-cap company, went up by 5% on Tuesday, October 1, after the company announced a new project integration plan.

The board has approved the launch of a forward integration project, which will focus on producing stainless steel wires, bright bars, and annealed and pickled products. The project is expected to cost up to ₹50 crore.

Following the news, the stock, priced below ₹100, was trading up by 4.58%, reaching ₹65.24 per share around 11:23 AM on the BSE. It even touched a high of ₹65.49 during the day.

Rathi Steel and Power reached its 52-week high of ₹97.81 on July 30, 2024, while its 52-week low was ₹20.35 on December 4, 2023. The company’s market capitalisation currently stands at ₹554.95 crore.

In a letter to the Bombay Stock Exchange (BSE) on September 30, 2024, the company mentioned that this project will help them use some of their capacity for internal purposes and meet the growing demand for these products in industries like Energy, Electric Vehicles (EV), Engineering, and Defence.

The project will be developed on extra land at Rathi Steel’s existing site in Ghaziabad, Uttar Pradesh, which will help lower logistics and overhead costs. The company plans to seek necessary approvals and begin the project after assessing its technical and financial feasibility.