Rama Steel Shares Surge On Green Energy Collaboration With Onix Renewable
As part of the deal, Rama Steel Tubes plans to provide critical steel structures and single-axis trackers for Onix Renewable’s solar projects.
Shares of Rama Steel Tubes Ltd. surged over 18% on Friday after the company announced a new partnership with Onix Renewable Ltd. to supply steel structures for solar projects.
This collaboration marks RSTL’s entry into the green energy sector as it plans to provide critical steel structures and single-axis trackers for Onix Renewable’s solar projects, with plans to expand to dual-axis trackers.
The manufacturer and trader of steel pipes is committed to delivering products that ensure high reliability, durability, and performance, essential for the long-term success of solar projects, it said in an exchange filing.
“The prospects of this Strategic Collaboration with Onix Renewable Ltd. are to deliver top-quality solar energy solutions. Together, we will pave the way for a brighter and more sustainable future,” the company said in the filing.
Shares of the company rose as much as 18.96% to Rs 16.50, its highest level since January 2023. They pared gains to trade 16.6% higher at Rs 16.18 as of 10:25 a.m. when Nifty was 0.9% down.
The stock has risen more than 50% in its five session rally, 34.6% on year-to-date basis, and 36% in the last 12 months. Total traded volume so far in the day stood at 14 times its 30-day average. The relative strength index was at 82.8, indicating that the stock has been overbought.
