Rama Steel Shares Jump As Company Partners With Onix Renewable For Solar Energy Projects
The new venture into the renewable energy sector is expected to positively impact the company's Ebitda.
Shares of Rama Steel Tubes Ltd. surged over 13% on Wednesday after the company entered into a partnership with Onix Renewable Ltd. to supply steel structures and single-axis trackers for solar energy projects, with plans to eventually expand into dual-axis trackers.
The partnership aims to support Onix Renewable’s solar projects by providing essential components that enhance the structural integrity and efficiency of solar installations, the company said in an exchange filing. Rama Steel Tubes has developed specialised steel structures and tracker tubes designed for these green energy projects.
The company also said its new venture into the renewable energy sector is expected to positively impact its earnings before interest, taxes, and amortisation (Ebita).
Rama Steel Tubes, established in 1974, is a leading manufacturer of steel tubes in India, offering a wide range of products including pre-galvanised tubes, structural tubes, and hollow sections. The company operates state-of-the-art manufacturing facilities across multiple locations in India.
Onix Renewable Ltd., the partner company, is involved in various sectors of renewable energy and currently has 600 MW of projects underway, with an additional 2200 MW planned. The new partnership is expected to contribute to the success and durability of these solar projects.
Shares of Rama Steel rose as much as 13.47% to Rs 11.96 apiece, the highest level since Aug. 1. The stock pared gains to trade 12.71% higher at Rs 11.88 apiece, as of 12:41 p.m. This compares to a 0.48% decline in the NSE Nifty 50 index.
The stock has fallen 8.62% in the last 12 months. Total traded volume so far in the day stood at 5.9 times its 30-day average. The relative strength index was at 63.
