Rama Steel Tubes Ltd.'s share price jumped 10% after the company said it has started a new unit to carry out business in renewable energy space. ONIX IPP Pvt. Ltd. is the new wholly owned subsidiary of Rama Steel Tubes with an authorised capital of Rs 1 lakh, it said in an exchange filing on Monday.
The Acquisition and Allotment Committee of the company approved the incorporation of the subsidiary with an investment of 10% in the name and style of ONIX IPP or any other name as may be approved by the Ministry of Corporate Affairs, Rama Steel Tubes Ltd. said in an exchange filing.
Rama Steel Tubes will subscribe 10% to the share capital in cash, the company said in an exchange filing.
Rama Steel Tubes share price rose 10% to Rs 13.53 apiece, the highest level since Nov 14. It pared gains to trade 8.29% higher at Rs 13.36 apiece as of 12:34 p.m., as compared to 0.18% advance in the NSE Nifty 50 index.
The stock rose 4.98% in 12 months, and 10.67% on a year to date basis. Total traded volume so far in the day stood at 2.0 times its 30-day average. The relative strength index was at 55.77.
The stock scaled 52–week high of Rs 17.55 apiece on Sep 9. It hit a 52–week low of Rs 9.90 apiece on June 4.
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