Penny stock under ₹15: Rama Steel Tubes share price soars 18% on renewable energy foray
In an exchange filing today, the company announced an updated strategic investment in the renewable energy space through its participation as a joint venture (JV) partner in a 225 MW solar power project under the Government of India's ambitious PM-KUSUM
The project, structured under Onix IPP, a Special Purpose Vehicle (SPV), is spread across multiple locations in Maharashtra. It has successfully signed Power Purchase Agreements (PPAs) with the Maharashtra State Electricity Distribution Company Limited (MSEDCL) at a fixed tariff of ₹ 3.10 per unit for a 25-year term.
This investment marks RSTL's significant diversification into the clean energy space. The company said that the participation ensures stable long-term returns from the green and renewable energy sector. With its 10% stake in the SPV, the company will proportionally benefit from recurring income, adding a new dimension of sustainability-linked revenue to its business portfolio.
As part of this venture, Rama Steel holds a 10% equity stake in Onix IPP. The project is expected to generate gross annual revenue of ₹ 108.11 crore, translating to a total revenue of ₹ 2,702.81 crore over the 25-year PPA period.
Based on its stake, RSTL is projected to earn ₹ 10.81 crore annually, resulting in a total share of ₹ 270.28 crore over the entire duration of the agreement.
Mr Richi Bansal, whole time director & chief executive officer, said, "we are proud to be part of this landmark renewable energy initiative. Our strategic investment in the 225 MW PM-KUSUM project not only strengthens our ESG profile but also diversifies our revenue base. This is a future-forward step aligned with India's net-zero vision and rural empowerment.'
Earlier, the company entered the defence sector by incorporating Rama Defence Private Limited, which will engage in trading, importing, exporting, manufacturing, assembling, and supplying defence equipment, arms, ammunition, explosives, and related military and security hardware.
The company, which operates in the steel tubes and pipes manufacturing sector, has seen its shares skyrocket 177% in the last three years and 3,217% over the past five years. The company's shares have been trading ex-split in the ratio of 2:1 since March 2024.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Hans India
20 minutes ago
- Hans India
Modi's Swadeshi push amid global uncertainty
Varanasi: Prime Minister Narendra Modi onSaturday called on citizens to adopt the spirit of "Swadeshi" and support locally-made products, stressing that true service to the nation lies in promoting indigenous goods, especially amid "global economic uncertainties". Addressing a public meeting in his parliamentary constituency Varanasi, Modi said, "As we talk about economic progress, I want to draw your attention to the current global scenario. "The world economy is facing instability and uncertainty. In such times, countries are focusing solely on their own interests. India, too, is on the path to becoming the world's third-largest economy and must remain alert to its own economic priorities." The Prime Minister's renewed push for 'Swadeshi' (indigenous) comes amid the US announcing tariffs on exports from about 70 nations, including India. According to the White House order, India now faces tariffs of 25 per cent for its exports to the US. Emphasising that farmers, small industries and employment for youths are the top-most priorities for the government, Modi said, "The government is doing everything possible in this direction. But as citizens, we too have responsibilities." Calling for a national movement to support local products, the Prime Minister said, "This is not just about Modi saying it, every Indian should say this -- if we want India to become the third-largest economy, every political party and every leader, keeping aside their hesitations, must work in the nation's interest and awaken the spirit of Swadeshi among the people." He also urged people to be conscious consumers, saying, "Whatever we buy, we should ask ourselves -- has an Indian toiled to make this? If it has been made by the sweat of our people, with their skills, that product is Swadeshi for us. We must adopt the mantra of 'Vocal for Local'." Making a special appeal to traders and shopkeepers, the Prime Minister said, "At a time when the world is going through uncertainty, let us take a pledge to sell only Swadeshi goods from our shops and markets. Promoting made in India goods will be the truest service to the country." With the festival and wedding seasons approaching, the prime minister encouraged people to ensure that all new purchases are made in India. He recalled how many citizens who were planning to hold wedding events abroad shifted them to India after his earlier appeal. "The feeling of Swadeshi in every action will define our future. This will also be a true tribute to Mahatma Gandhi. Only through collective effort can we fulfil the dream of a developed India," Modi said. The prime minister was addressing a massive public gathering on Saturday in Banauli village, Sevapuri, Varanasi. During his one-day visit to the city, he inaugurated and laid the foundation stone for 52 projects worth around Rs 2,200 crore. He also transferred Rs 20,500 crore directly into the bank accounts of over 9.70 crore farmers under the 20th installment of the PM-KISAN Samman Nidhi scheme. A short film showcasing the success and impact of the scheme on farmers was also screened during the event. The PM highlighted the government's farmer-centric policies in detail. He said the government is constantly working for the well-being of farmers. Under previous governments, promises made in the name of farmers were rarely fulfilled, but the BJP government delivers what it promises, he said. He cited the PM-KISAN Samman Nidhi as proof of the government's firm commitment and recalled how opposition parties like the Samajwadi Party and Congress had spread rumours in 2019, claiming the scheme would stop after elections or the money would be taken back. "Has a single installment stopped over the years? The PM-KISAN scheme is running without any break," he said. Presenting data, he shared that nearly Rs 3.75 lakh crore has been transferred directly to farmers' accounts so far. In Uttar Pradesh alone, 2.5 crore farmers have received over Rs 90,000 crore, while farmers from Kashi have got Rs 900 crore. Modi emphasised the transparency of the scheme, saying there are no cuts, commissions or middlemen. "We have created a permanent system where there's no leakage and no one can steal the rights of the poor," he added. Referring to his development mantra, "the more backward someone is, the higher the priority", the PM spoke about the newly approved PM Dhan Dhanya Agriculture Scheme, which will focus on underdeveloped districts with lower crop production and income.
&w=3840&q=100)
Business Standard
20 minutes ago
- Business Standard
Farmers' welfare top priority under PM Modi's leadership: Shivraj Chouhan
Union Agriculture and Farmers Welfare Minister Shivraj Singh Chouhan on Saturday said that the welfare of farmers is a top priority of the government under the leadership of Prime Minister Narendra Modi. Addressing the gathering of farmers, officials and dignitaries in Patna, Agriculture Minister Chouhan said that with the help of the Direct Benefit Transfer scheme, the government is ensuring that the assistance reaches directly into the accounts of the farmers. "Earlier, farmers used to get only a few pennies of Re 1 sent by the government, but now they receive the whole amount without any leakage," the Agriculture Minister said here. The Union Minister reiterated Prime Minister Narendra Modi's resolve to make farming profitable. Over Rs. 3,77,000 crore has been transferred directly to the accounts of farmers under the PM-Kisan scheme so far. On this occasion, over Rs. 20,000 crore was deposited in the accounts of farmers, providing financial assistance to lakhs of farmer families across the country. Chouhan emphasised efforts like Pradhan Mantri Dhan Dhanya Yojana to increase agricultural productivity per hectare, especially in low productivity areas. He highlighted the significant contribution of Makhana production in Bihar and the continuous efforts to connect agricultural science with the farms. The Union Minister assured the timely and adequate availability of fertilisers and pesticides. He also informed about the efforts under various schemes to provide compensation in case of crop failure. He said that now the crops are procured at Minimum Support Price (MSP), to which 50 per cent profit is added on the production cost. This reflects the farmer-centric approach of the government. Highlighting the measures for farmers' welfare, under the leadership of Prime Minister Narendra Modi, Chouhan said that with the help of DBT (Direct Benefit Transfer), the government is ensuring that the assistance reaches directly into the accounts of the farmers. He said, "Earlier, farmers used to get only a few pennies of Rs. 1 sent by the government, but now they receive the whole amount without any leakage. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Hindustan Times
an hour ago
- Hindustan Times
₹353 crore transferred to 16.77 lakh PM-KISAN beneficiaries in Haryana
An amount of ₹353 crore was transferred directly to the accounts of 16.77 lakh farmers under the 20th installment of the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme across the state, said Haryana agriculture minister Shyam Singh Rana. Addressing the gathering, Haryana agriculture minister Shyam Singh Rana shared detailed insights into the PM-KISAN scheme and other agriculture-related initiatives being implemented in the state. The announcement was made during a special event held at National Dairy Research In (NDRI) by Krishi Vigyan Kendra in Karnal, coinciding with Prime Minister Narendra Modi's address from Varanasi, Uttar Pradesh. A direct telecast of the Prime Minister's programme was organised at the NDRI auditorium, where a large number of farmers and their families gathered from the region. Addressing the gathering, Haryana agriculture minister Shyam Singh Rana shared detailed insights into the PM-KISAN scheme and other agriculture-related initiatives being implemented in the state. He informed that 80,794 farmers from Karnal district alone received ₹18 crore under the 20th installment, directly into their Aadhaar-linked bank accounts through direct benefit transfer (DBT). 'The PM-KISAN scheme, launched by Prime Minister Narendra Modi on February 24, 2019, aims to support farmers with timely access to fertilizers, seeds, and financial assistance,' Rana said. 'Eligible farmer families are provided ₹6,000 annually in three equal installments of ₹2,000 every four months,' he added. So far, Haryana has disbursed a total amount of ₹6,563.67 crore under the scheme across the previous 19 installments, he noted. The event in Karnal not only marked the distribution of PM-KISAN's 20th installment but also showcased the state government's continued commitment to transforming Haryana's agriculture sector through technology, sustainability, and direct support. Similar events were held at KVK Damla in Ambala, where energy minister Anil Vij was the chief guest as well as at KVK Damla in Yamunanagar, where minister of state Rajesh Nagar presided over the programme.
