Steel Stock Enters Into Settlement Agreement With Bank of Baroda; Scrip At 2% Upper Circuit

The company informed the exchange on Tuesday, Rathi Steel and Power has entered into a settlement agreement with ACRE Limited (ARC) in respect of a loan originally availed from Dena Bank (now Bank of Baroda), which was subsequently assigned to ACRE.

The company has accepted the terms of the proposal communicated by the lender and in compliance with the same, the settled amount has been paid in full, it added.

On the reasons for opting for settlement, the company said, "Due to continuous losses in the past as a result of various external factors, the debt had grown to unsustainable levels. Thus, it was imperative to enter into debt resolution/settlement."

The company's shares have given a return of 30 per cent in the past one month and 86 per cent YTD. The stock has delivered a multibagger return of 121 per cent in the past three months and 323 per cent in 6 months.

Rathi Steel and Power is a microcap company having a market cap of Rs 182.15 crore.

Recently, Rathi Steel announced its Q3FY24 results. The company reported net sales at Rs 101.22 crore in Q3FY24 from Rs. 172.82 crore in Q3FY23. Their quarterly net profit at Rs. 0.79 crore in Q3FY24 from Rs. 3.01 crore in Q3FY23. Rathi Steel's EBITDA stands at Rs. 6.16 crore in Q3FY24 from Rs. 8.65 crore in Q3FY23.

Rathi Group of Delhi. The Group owes its presence in the steel industry to the farsightedness of the late Seth Gordhan Das Rathi. He set up a small re-rolling mill in Delhi in the early 40s. Since then the Group has grown continuously. Shri Gordhan Das Rathi's commitment to quality, integrity, honesty, and growth is being followed to date.

On Wednesday, the shares of Rathi Steel And Power were locked in a 2% upper circuit limit at Rs 59 apiece during the afternoon deals.