Rama Steel Tubes Stock Up By More Than 12% Today After Company Acquires 10% Stake In Solar Power Project
By Ankur Chandra | Updated at: Jun 6, 2025 12:19 PM IST
New Delhi, June 5, 2025 — Shares of Rama Steel Tubes Ltd (NSE: RAMASTEEL, BSE: 539309) rallied by 14.09%, closing at ₹13.36 on Thursday, after the company announced a major strategic move into the renewable energy space. The surge follows the company’s participation in a 225 MW solar power project under a joint venture, aligned with the Government of India’s PM-KUSUM scheme.
Order Win and Renewable Push
Rama Steel Tubes, a small-cap penny company that makes ERW steel tubes and pipes, said that it is involved in the renewable energy sector by owning 10% of Onix IPP, the Special Purpose Vehicle that is building the solar project in Maharashtra.
The Maharashtra State Electricity Distribution Company Limited (MSEDCL) has already signed Power Purchase Agreements (PPAs) for the project. The price is fixed at ₹3.10 per unit for 25 years.
Financial Impact:
| Particulars | Amount (INR) |
|---|---|
| RSTL’s Stake in SPV | 10% |
| Annual Revenue to RSTL | ₹108.11 million |
| Total Revenue Over 25 Years | ₹2,702.81 million |
The total estimated annual gross revenue from the SPV stands at ₹1081.13 million, translating to a stable long-term inflow for Rama Steel Tubes from this sustainability-linked initiative.
Stock Performance & Market Stats
- Last traded price: ₹13.36
- Previous close: ₹11.71
- Gain: ₹1.65 (+14.09%)
- Volume traded: 15.57 crore shares
- Market cap: ₹2,081.84 crore
- 52-week range: ₹8.50 – ₹17.55
- P/E Ratio: 82.38 (Adjusted)
The stock hit a day high of ₹13.84 and featured in the Top 10 most traded stocks today, highlighting strong investor interest.
Management Commentary
“We are proud to be part of this landmark renewable energy initiative. Our investment in the 225 MW PM-KUSUM project not only strengthens our ESG profile but also diversifies our revenue base,” said Mr. Richi Bansal, Whole Time Director & CEO, Rama Steel Tubes Ltd.
About the Company
Founded in 1974, Rama Steel Tubes Ltd is a leading manufacturer and exporter of steel tubes in India with ISO 9001:2015 certification. The company has four manufacturing units and offers a range of products including pre-galvanized tubes, MS black & galvanized tubes, and hollow sections.
REF: https://www.nseindia.com/get-quotes/equity?symbol=RAMASTEEL
https://nsearchives.nseindia.com/corporate/RAMASTEEL_05062025134703_Mediarelease05062025.pdf
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