Here's why Rama Steel Tubes shares rallied 14% on September 4; details here

Rama Steel Tubes stock flies: Rama Steel Tubes shares zoomed as much as 13.68 per cent to hit an intraday high of Rs 11.96 per share on Wednesday, September 4, 2024.

The rise in Rama Steel Tubes came after the company announced that it has inked a partnership with Onix Renewable. Onix Renewable works in various sectors, including Renewable Energy, IPP, EPC, Energy Transition, Infrastructure, Wind, Solar, Storage, Utility, Hybrid, Green Hydrogen, R&D, Power Generation, and Solar Panel Manufacturing. The company currently has 600 MW of projects underway and an additional 2200 MW planned for the future.

According to an exchange filing, the collaboration between Rama Steel Tubes and Onix Renewable will focus on utilising Rama Steel Tubes' expertise to supply steel structures and single-axis trackers for Onix’s solar projects, with potential future expansion to dual-axis trackers.

 

The company has developed specialised steel structures and tracker tubes designed to support Greenfield Solar Projects, marking a majorsignificant expansion into the green energy sector, it added.

“We are proud to announce our entry into the Green Energy segment and are determined to deliver products that ensure the highest standards of reliability, durability, and performance, which are critical to the long-term success of solar greenfield projects,” Rama Steel Tubes said.

“The positive impact on our Ebitda and the establishment of RSTL’s position in the renewable energy sector further highlight the benefits of this collaboration. The reliability and lifespan of these solar projects are heavily dependent on the quality and durability of the steel structures which play a critical role in ensuring the long-term success and efficiency of such projects. The prospects of this Strategic Collaboration with Onix Renewable Ltd to deliver top-quality solar energy solutions. Together, we will pave the way for a brighter and more sustainable future,” said Richi Bansal, WTD & CEO of Rama Steel Tubes. 

Founded in 1974, Rama Steel Tubes is a manufacturer of steel tubes in India. With a diverse product range including Pre-Galvanized Tubes, Structural Tubes, MS Black and Galvanised Tubes, and Hollow Sections, the company is among the leading names in the Indian steel industry. The company operates state-of-the-art manufacturing facilities across four locations.

The market capitalisation of Rama Steel Tubes is Rs 1,770.77 crore, according to the Bombay Stock Exchange (BSE). 

At 12:35 PM, shares of Rama Steel Tubes were trading 12.74 per cent higher at Rs 11.86 per share. In comparison, BSE Sensex was trading 0.49 per cent lower at 82,147.38 levels.