Rama Steel Tubes, a small-cap stock trading below ₹20, will be in the spotlight when the Indian stock market opens on Monday. The company’s board has announced its entry into the defense sector by creating a new subsidiary called Rama Defence Private Ltd. This move follows the company’s successful reduction in its bank loan limit.
On Friday, Rama Steel Tubes shared with the stock market that it had successfully reduced its total bank loan limit by ₹20 crore, which is 6% of the existing loan limits. The company emphasized that this achievement reflects its commitment to financial stability and growth.
Over the past year, Rama Steel Tubes has reduced its total sanctioned loan limits by 60.27%, or ₹210 crore, from the original ₹348 crore, including loans related to its subsidiary, Lepakshi Tubes Private Limited.
In addition to its financial updates, the company announced that its board has approved the creation of a wholly-owned subsidiary focused on the defense sector, named Rama Defence Pvt. Ltd. This new subsidiary will conduct business in India’s defense sector.
On Friday, Rama Steel Tubes shares closed at ₹10.56 each on the NSE. The stock is available for trading on both the BSE and NSE, with a market cap of ₹1,641 crore and a trading volume of 84,77,248 on the NSE. The stock’s 52-week high is ₹16.83, while its 52-week low is ₹9.90 per share.
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