Shares of Gujarat-based company Rhetan TMT Ltd have given strong returns in the last two years. Shares of this steel-related company have jumped 10 times in the last two years and now the Ahmedabad-based company is preparing to enter a new business, for which a meeting of the company’s board has been called.
Company’s board meeting on 20 September 2024
In its exchange filing, Rhetan TMT said that the company’s board meeting was convened today i.e. Friday, 20 September 2024, in which the board has accepted the proposal for approval to set up a solar power plant. Its capacity will be two megawatts (2MW). This plant will require an area of about 20,000 square meters and it will be set up in Bayad taluka of Aravalli district.
Letter of Intent (LoI) for the project
Letter of Intent (LoI) has already been given for this project. The company is now going to submit its petition to Gujarat Energy Development Agency (GEDA) to get all the approvals. After this, the company will obtain Technical Feasibility Report (TFR) and then lease will be applied for the proposed place. The energy of this solar plant will be used for the company’s use.
On Friday, Rhetan TMT shares jumped 7 per cent to Rs 17.10. The total market capitalization of the company exceeded Rs 1,300 crore. In the last two years, the company’s shares have jumped up to 970%. In September 2022, the price of this share was around Rs 1.6.
Green signal also given for acquisition to expand steel business
Along with this, the company board has also given the green signal for acquisitions to expand the steel business. In this regard, Rhetan TMT is going to talk to many companies and any decision regarding acquisition will be taken only after complete analysis.
The company recorded a revenue of Rs 19.43 crore in the June 2024 quarter
In the June 2024 quarter, the company had recorded a revenue of Rs 19.43 crore, while its profit was Rs 0.81 crore. In the financial year 2024, the company’s revenue was Rs 64.77 crore while the profit was Rs 3.87 crore. Rhetan TMT, which was listed in August 2022, had raised Rs 56 crore through its SME IPO, when the company had issued shares at a price of Rs 7.
Rhetan TMT is part of Lesha Group of Gujarat
Started in 1984, Rhetan TMT is a part of the Lesha Group of Gujarat. The company’s plant is located in Mehsana. The company has a daily capacity of 100-120 metric tons (MT). The company manufactures earthquake resistant TMT Bars, which are used in houses, bridges, viaducts and other infrastructure projects. The company also manufactures Steel Round Bars.