The shares of the Penny inventory specializing within the manufacturing of tungsten carbide merchandise, hit a 20 p.c higher circuit following the approval of the merger of United Wolfram Pvt. Ltd. with itself.
With a market capitalization of Rs. 47.70 crores on Monday, the shares of Rapicut Carbides Restricted hit a 20 p.c higher circuit, making a excessive of Rs. 88.80 per share in comparison with its earlier closing value of Rs. 74.00 per share.
Rapicut Carbides Restricted’s Board authorized the amalgamation of United Wolfram Personal Restricted (UWPL) with itself, topic to shareholder and regulatory approvals. The merger goals to create operational synergies by integrating UWPL’s upstream tungsten processing capabilities with RCL’s downstream product manufacturing.
Each corporations serve numerous industrial sectors, together with mining, automotive, and electronics. As a part of the merger, RCL will situation 3.31 crore fairness shares to UWPL shareholders, with no money concerned.
This transfer is predicted to streamline operations, improve provide chain safety amid world uncooked materials constraints, and develop market attain. Put up-merger, RCL’s promoter shareholding is projected to rise from 40.46 p.c to 91.69 p.c. The scheme will end in UWPL being dissolved with out winding up, and the brand new fairness construction will replicate this integration.
Financials & Others
The corporate’s income declined by 38 p.c from Rs. 16.94 crore to Rs. 10.49 crore in Q4FY24-25. In the meantime, the Web revenue declined from Rs. 0.53 crore to Rs. 0.33 crore throughout the identical interval.
The corporate has a low debt-to-equity ratio of 0.34, sturdy liquidity with present property exceeding present liabilities, and the corporate has achieved a formidable common 3-year income progress of 18.52 p.c.
Rapicut Carbides Restricted, included in 1977, is a public firm based mostly in Gujarat, India. It’s one in all India’s Largest producers of Tungsten powder, which specializes within the manufacturing, importing, and exporting of tungsten carbide merchandise, serving industries corresponding to steel chopping, mining, and put on components functions.
The corporate produces a variety of tungsten carbide-based merchandise, together with put on components (like nozzles, seals, and liners), steel chopping instruments, mining merchandise, milling inserts, TC shear blades, and chilly heading pellets. These merchandise are utilized in demanding sectors corresponding to oil & fuel, mining, and heavy engineering
The corporate has a set of marquee purchasers, together with main names corresponding to Metal Authority of India, NLC India, Indian Railways, Nationwide Aluminium Firm, Mineral Exploration Company, Bharat Heavy Electricals, Northern Coalfields, Mahindra Accelo, Tata Metal, JSW Metal, United Wolfram, and Heavy Engineering Company.
Written by Sridhar J
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