Rama Steel Tubes moves to reshape its capital structure

The EGM approved a maximum equity issuance of 61,28,00,000 new shares:

• 28,00,00,000 shares for cash
• 33,28,00,000 shares as non-cash consideration for the Automech acquisition

Both tranches were priced at Rs 5 per share. ^[1]

Using the existing share capital of 1,63,60,40,979 shares, the calculation is:

• Post-issue shares: 2,24,88,40,979
• New shares as a percentage of post-issue equity: 27.25%
• Increase in share count versus the pre-issue base: 37.46%
• Existing shareholders’ ownership would reduce to approximately 72.75%, assuming the full issue is allotted.

This is the maximum potential dilution, because the approval is for “up to” these quantities; it is not evidence that all shares have already been allotted. The EGM also approved up to 8,00,00,000 convertible warrants at Rs 5 each. If all warrants are subsequently converted, fully diluted new securities would total 69,28,00,000, implying approximately 29.75% dilution on a post-conversion basis. ^[1]

Floor-price comparison: The issue price is clearly stated as Rs 5 per share, but the numerical SEBI-mandated floor price calculated in the EGM notice could not be confirmed from the cited notice extract. Therefore, the exact premium or discount of Rs 5 to the floor price—and whether it was above, equal to, or below that floor—cannot be calculated reliably from the available disclosure.

Rama Steel Tubes’ new Authorized Share Capital is Rs 250 Crores, increased from Rs 200 Crores; shareholders approved the capital-clause alteration at the 21 October 2026 EGM ^{[2] [1]}.

• Gross headroom: Against pre-issue equity share capital of Rs 163.60 Crores ^[3], the company has Rs 86.40 Crores of unused authorised capital capacity, calculated as Rs 250 Crores minus Rs 163.60 Crores.
• After the announced preferential securities: The proposed 28 Crore cash equity shares, 33.28 Crore non-cash equity shares and 8 Crore convertible warrants represent up to Rs 69.28 Crores of nominal share capital, assuming full warrant conversion ^[1].
• Residual headroom after those instruments: Approximately Rs 17.12 Crores, calculated as Rs 86.40 Crores less Rs 69.28 Crores.

Thus, the alteration accommodates the announced preferential issue and warrant conversion, but leaves only about Rs 17.12 Crores of authorised-capital capacity for additional issuances thereafter. This is nominal capital headroom, not a guaranteed amount of future fundraising proceeds.