Rama Steel Tubes Shares Rise 32% After Green Energy Partnership

Shares of Rama Steel Tubes Ltd. experienced a significant surge on September 5, 2024, with gains of nearly 20%, following a robust performance the previous day when the stock rose by approximately 10%. The stock reached an intraday high of ₹13.90 on the Bombay Stock Exchange (BSE), marking a notable increase of 32% over the two-day period.

The remarkable rise in share prices is primarily attributed to the company’s recent strategic partnership with Onix Renewable Ltd. This collaboration aims to supply steel structures and single-axis trackers for solar energy projects, with plans to expand into dual-axis trackers in the near future. This partnership marks an important entry for Rama Steel Tubes into the green energy sector, a move that has garnered a positive response from investors.

CEO Richi Bansal expressed pride in the company’s foray into the Green Energy segment, emphasizing their commitment to delivering products that meet the highest standards of reliability, durability, and performance. Such qualities are crucial for ensuring the long-term success of solar greenfield projects.

The quality and durability of the steel structures developed by Rama Steel are essential components that significantly impact the longevity and efficiency of solar energy projects. As the renewable energy sector continues to expand, the demand for reliable materials becomes increasingly critical.

According to the latest shareholding pattern for the June quarter, the company’s promoters hold a 56.33% stake, which represents a slight decrease from 56.7% in March 2024. Despite these fluctuations, the recent surge in stock prices has turned the shares of Rama Steel Tubes positive for the year, with an overall gain of 6% year-to-date.