Shares of Rhetan TMT, which debuted on the bourses in September 2022, were locked at the 5-per cent upper circuit at Rs 299.05 on BSE on Monday. The stock was locked in the upper circuit for the 10th consecutive trading day. In the past one month, the stock of the company, engaged in iron & steel products business, has zoomed 117 per cent. In comparison, the S&P BSE Sensex was up nearly 3 per cent during the period.
In the past three months, the stock has rallied 350 per cent, as against 6 per cent rise in the benchmark index. It has also gained 327 per cent over its issue price of Rs 70 per share. The company is engaged in manufacturing of TMT Bars and Round Bars.
In October, Rhetan TMT had said that the price movement of the security is purely market driven and not as a result of any announcement/ pending announcement by the Company. The Company shall continue to ensure timely dissemination of material/ price sensitive information to the exchange and public as and when required, it had said.
Rhetan TMT trades in the SME segment under the ‘M’ group on the BSE only. The trading, clearing and settlement in the SME segment is done on a T+2 basis. Trades done in BSE SME scrips are required to be compulsorily settled in demat mode.
Till 12:15 pm, as many as 170,000 shares had changed hands on the counter, and there were pending buy orders for 68,000 shares on the BS. On an average, 97,000 shares had traded over the last two weeks, the exchange data shows.
The company proposed to utilize the net proceeds from the Issue towards funding capital expenditure for expansion and modernization at Mehsana district in Gujarat, and funding working capital requirements.
According to industry reports, the balkans TMT steel bar market was valued at $1,769 million in 2017, and is anticipated to reach $4,065 million by 2024, registering a CAGR of 12.5 per cent from 2018 to 2024. In terms of volume, this market accounted for 2,669 thousand tons in 2017, and is anticipated to reach 5,435 tons by 2024, registering a CAGR of 10.6 per cent from 2018 to 2024, the company said on market.
Thermo-mechanically treated (TMT) steel bars are high-strength reinforcement bars, which are used in construction & infrastructure projects, due to their superior strength, weldability, corrosion resistance, and other desirable properties.
The growth of the Balkans TMT steel bar market is driven by different factors such as rise in demand for low-cost reinforcement bars and surge in construction projects such as dams and bridges across the Balkans.
“Moreover, increase in government support for steel & coal production and advantages offered by TMT steel bar over torsional bars are the key factors that augment the growth of the Balkans TMT steel bar industry. However, technical restraints such as bend ability associated with high grade steel bars are expected to hamper the growth of the market. On the contrary, increase in investment by other countries such as China in Balkan metal industry is expected to provide new opportunities for the key players,” the company said in DRHP.