Synopsis: Rama Steel Tubes, a small-cap company, has announced the formation of a defence subsidiary, Rama Defence Pvt. Ltd., and a successful reduction of its sanctioned bank loan limit by Rs 20 crores. The company has also decreased its overall bank loan limit by 60.27% over the past year, marking significant financial progress.
Rama Steel Tubes Ltd, a small-cap company trading below Rs20, will be under close watch on Monday following key announcements. The company's board recently approved the incorporation of a wholly-owned subsidiary, Rama Defence Private Ltd, marking its entry into the defense sector. This strategic move is expected to attract significant attention in the market.
Additionally, the company has successfully reduced its sanctioned bank loan limits by Rs20 crore, or 6% of its existing sanctioned limits, highlighting its commitment to financial stability and growth. Over the past year, Rama Steel Tubes has achieved a notable reduction of 60.27% in its total sanctioned loan limits, amounting to Rs210 crore.
Rama Steel Tubes shares closed at Rs10.56 apiece on Friday, with a market capitalization of Rs1,641 crore. The company's 52-week trading range is between Rs9.90 and Rs16.83 per share.
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