Shares of Rathi Steel And Power Surged 5% To Hit Upper Circuit; Here’s Why

On Thursday, shares of metal stock Rathi Steel And Power Ltd were up by 5 percent and were working at the upper circuit level of Rs 60.63. RSPL with a market cap of around Rs 515.74 crore is a metal products company whose shares have a 52-week high of Rs 62.48 and a 52-week low of Rs 3.15. On Wednesday, the company announced that it had commenced activities in relation to wire rod mill modernisation.

The company said in an exchange filing that, "Once completed, it's expected to enable us to improve product quality / product mix. The above activities are likely to be completed in 3/4 weeks and will impact production levels in the interim period, but will yield benefits in the long run".

Earlier this year, the board of directors of the company approved allotment of up to 3,55,70,522 shares on a preferential basis. The board has considered and approved the Issue and allotment of upto 3,55,70,522 Equity Shares of face value of Rs. 10/- each to persons belonging to the Non-Promoter Category, on a preferential basis, at Rs32.25 for cash, subject to shareholders' approval.

Incorporated in 1971, Rathi Steel And Power Ltd is in the business of Steel and Steel related products. Business Overview: The company is a part of the P.C. Rathi Group of Delhi. It manufactures Rebars and Wire Rods which are broad.