Rama Steel Tubes Ltd

Rama Steel Tubes Limited was incorporated on February 26, 1974, having its registered office in New Delhi. The Company is engaged into the business of manufacturing steel pipes and tubes, G.I. Pipes in India and related products. Its manufacturing facilities are located at Sahibabad in Uttar Pradesh , Khopoli, Raigarh in Maharasthra and Hindupur in Andhra Pradeshthrough wholly owned SubsidiaryLepakshi Tubes Pvt. Ltd. The total installed capacity stood at 96,000 MT. The key products in portfolio include Galvanized Tubes, ERW Black Steel Pipes Tubes, Scaffolding Pipes Tubes, Structural Steel Products and Hollow Sections. The Company also has a wholly owned foreign subsidiary in Dubai, UAE in the name of RST International Trading FZE, which is engaged in trading of building construction material item. As on March 31, 2017, the Company had 2 subsidiaries Companies, namely, RST International Trading FZE and Lepakshi Tubes Private Limited, wherby 1 entity is registered in India and 1 is registered outside India. In FY 2015, the Company has issued and allotted 12,44,500 equity shares of Rs. 10/ each as Bonus shares. Consequently, the paidup equity share capital increased from Rs. 24,89,000/ to Rs. 1,49,34,000/ as on March 31, 2015.The Board of Directors recommended subdivision of Equity Shares of Rs. 10/ each into two Equity Shares of Rs. 5/ each and Bonus shares in the ratio of 4:1, which was approved by shareholders in an Extraordinary General Meeting, held on March 1, 2016. Accordingly, the Equity Shares of face value of Rs. 10/ each were subdivided into two Equity Shares of face value of Rs. 5/ each by way of corporate action to the shareholders who held shares on the Record Date March 15, 2016. Further, bonus shares in the ratio of 4:1 were allotted to members who held the equity shares on Record Date i.e., March 15, 2016 by capitalization of balance in the Free Reserves amounting to Rs. 5,97,36,000/. Consequently the issued, subscribed and paidup equity share capital increased from Rs. 1,49,34,000 divided into 14,93,400 Equity shares of Rs. 10/ each to Rs. 7,46,70,000 divided into 1,49,34,000 Equity shares of Rs. 5/each.In FY 20162017, the Company has issued 11,00,000 equity shares of Rs. 5/ each on preferential basis to the persons belonging to nonpromoter category. Consequently the issued, subscribed and paidup equity share share capital increased from Rs. 7,46,70,000 divided into 1,49,34,000 Equity shares of Rs. 5/each to Rs. 8,01,70,000 divided into 1,60,34,000 Equity shares of Rs 5/ each.During the year 201617, the Company acquired 100% stake in its wholly owned subsidiary, Lepakshi Tubes Private Limited.The Company has issued and allotted on preferential basis 15,00,000 fully convertible warrants at a price of Rs. 122/ each to persons belonging to promoter category on March 29, 2017 against which the 25% upfront money was received from them to the Company on or before 29 March 2017. Out of which 6,00,000 fully convertible warrants and 1,60,000 fully convertible warrants were converted into equivalent number of equity shares on 12 May 2017 and 27 May 2017 respectively on receipt of balance 75% money from the allottee(s) in respect of said warrants. As per Regulation 75 of Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, the convertible securities of the issuer shall be converted within eighteen months from the date of their allotment. By virtue of this, the remaining 7,40,000 fully convertible warrants must be converted on or before 28 September 2018. The allottee has not made payment of balance 75% of money in respect of 7,40,000 fully convertible warrants on or before 28 September 2018, therefore by virtue of Regulation 75 of Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009 7,40,000 fully convertible warrants were cancelled and 25% upfront money of 7,40,000 warrants forfeited.The issued, subscribed and paidup equity share capital of the Company is Rs. 8,39,70,000 divided into 1,67,94,000 Equity shares of Rs. 5/ each in FY 201819.