Shares of Rathi Steel & Power Limited experienced a significant surge on March 24, 2025, following the company’s announcement regarding the conversion of preference shares into equity shares. This strategic move has sparked interest among investors, leading to an impressive increase in the stock price. Let’s dive into the details of this noteworthy development.

Rathi Steel & Power’s Equity Allotment

In a recent filing with the stock exchange, Rathi Steel & Power revealed that its board had approved the issuance of 13,00,001 equity shares. Each share carries a face value of ₹10. This allotment is part of the conversion process of 15,05,265 1% Optionally Convertible Redeemable Preference Shares, which were initially issued on February 22, 2024.

• Key Details:
  • Equity Shares Allotted: 13,00,001
  • Face Value per Share: ₹10
  • Conversion Price: ₹55 per equity share
  • Preference Shares Issued on: February 22, 2024

The company stated, “We are pleased to inform that the Board has approved the allotment of equity shares following the conversion of preference shares,” as detailed in their exchange filing.

Impact on Paid-Up Capital and Share Price

Following this announcement, Rathi Steel & Power’s paid-up equity capital surged to approximately ₹86.36 crore, comprising 8,63,63,004 equity shares at a face value of ₹10 each. The stock closed at ₹34.93, marking a 13.82% increase from the previous close of ₹30.69. Notably, this announcement was made after the market had closed on March 24.

Performance in the Market

Rathi Steel & Power has proven to be a multibagger stock, delivering returns exceeding 770% over the past five years. However, it is essential to note that the stock has faced challenges recently, declining by 36.49% in the past year. Nonetheless, the stock has rebounded with a 21.28% increase in the last month alone and a 24.84% rise over the last five trading sessions.

• Performance Highlights:
  • 5-Year Return: 770%
  • 1-Year Decline: 36.49%
  • Monthly Gain: 21.28%
  • Recent Trading Sessions Gain: 24.84%

Stock Price Range

According to the latest data, Rathi Steel & Power reached its 52-week high of ₹97.81 on July 30, 2024, while the 52-week low was recorded at ₹24.50 on March 3, 2025. The stock’s recent recovery from its yearly low has attracted renewed investor interest.

Final Thoughts

The recent developments at Rathi Steel & Power demonstrate the company’s proactive approach in enhancing shareholder value through strategic equity allotments. As investors keep a close eye on the stock, it will be interesting to see how these changes impact its future performance in the competitive steel market. For those considering investments, staying updated on such announcements is crucial for making informed decisions.

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