Multibagger steel stock closes 6% higher on nod to raise funds via FPO

Shares of Rama Steel Tubes ended 6% higher on Tuesday after the iron and steel maker said its board has approved raising of funds by way of further issue of equity shares for an aggregate amount of up to Rs 500 crore by way of a further public offer.  

Rama Steel Tubes stock zoomed 7.39% to a high of Rs 13.80 against the previous close of Rs 12.85 on BSE. Market cap of the firm climbed to Rs 2,017 crore. Later, the multibagger steel stock closed 6.07% higher at Rs 13.63 on BSE. Total 96.71 lakh shares of Rama Steel changed hands amounting to a turnover of Rs 13.18 crore. 

Market cap of the firm rose to Rs 2,017 crore. The share has gained 36% in one year and gained 13% since the beginning of this year. It has risen 1334.74 % and 887.685 in three and five years, respectively.

The share fell to a 52-week low of Rs 9.97 on April 24, 2023 and a 52 week high of Rs 16.82 on January 23, 2024. The stock has a beta of 0.7, indicating low volatility in a year.  

In terms of technicals, the relative strength index (RSI) of Rama Steel Tubes stands at 47.4, signaling it's trading neither in the overbought zone nor in the oversold zone. Rama Steel Tubes shares stand higher than the 5 day, 20 day, 50 day,  100 day, 150 day and 200 day moving averages.

Rama Steel Tubes is engaged in the business of manufacturing of steel pipes and related products.