Penny stock below Rs 30 with 1,100% multibagger returns: Company creates 8,51,853 equity shares; reclassifies 4,08,147 preference shares and AGM on Sep 30, 2025

DSIJ Intelligence-1 / 04 Sep 2025/ Categories: Multibaggers, Penny Stocks, Trending

The stock is up by 7.7 per cent from its 52-week low and has given multibagger returns of over 1,100 per cent in 5 years.

Rathi Steel and Power Limited's authorised share capital is set for an adjustment. The company plans to create an additional 851,853 equity shares, each with a face value of Rs 10, totalling Rs 85,18,530. Concurrently, it will cancel and reclassify 408,147 unissued preference shares (also with a face value of Rs 10 each), converting them into an equivalent number of equity shares. These changes will result in a new authorised share capital of Rs 1,32,50,00,000, divided into 12,25,00,000 equity shares (Rs 1,22,50,00,000 total) and 1,00,00,000 preference shares (Rs 10,00,00,000 total).

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The company has also received BIS certification (license CM/L/8700195219) for its Fe 500 Reinforcement Bars, covering nominal sizes from 8 mm to 25 mm, which allows them to use the BIS Standard Mark on these TMT bars. This approval, valid until May 8, 2026, enables the company to produce a high-demand product line, optimise existing capacity, and meet market needs. This positive development follows the recommencement of operations at their Ghaziabad Steel Melting Shop, which manufactures steel billets.

About the Company

Incorporated in 1971, Rathi Steel and Power Limited manufactures and supplies steel and steel-related products. The company specialises in stainless steel products like Wire Rods, flats, etc, which are primarily used in infrastructure, engineering, and household applications. Rathi operates a plant in Ghaziabad, UP, with an installed capacity of 2,00,000 tons per annum or rolling capacity. The Company also operates a steel melting shop with an installed capacity of over 90,000 tons per annum to manufacture stainless steel billets.

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According to Quarterly Results, the company reports revenue of Rs 155.29 crore and PAT of Rs 1.89 crore in Q1FY26. In its annual results, the net sales increased by 2 per cent to Rs 503 crore in FY25 compared to FY24. The company reported a net profit of Rs 14 crore in FY25 compared to net profit of Rs 24 crore in FY24.

In the June 2025 or Q1FY26 shareholding update as per BSE, the Enforcement Directorate Raipur (Government of India) acquired 31,00,775 shares, representing a 3.59 per cent stake in the company, compared to no holding in March 2025. The stock is up by 7.7 per cent from its 52-week low and has given multibagger returns of over 1,100 per cent in 5 years.

Disclaimer: The article is for informational purposes only and not investment advice.