Shares of small cap firm, Rhetan TMT Limited ended higher on Monday, September 28. The Iron & Steel products stock hit upper circuit despite weakness in the Indian stock market today. BSE Sensex closed 1.52% lower at 72,771 points.
The rally in Rhetan TMT Limited stock came after the company announced that it has signed an MoU with Bajaj Tubular for around 20,000 MT TMT bars.
Rhetan TMT business update
The Gujarat-headquartered company signed an MoU with Bajaj Tubular for around 20,000 MT TMT bars. The MoU includes proposed procurement of approximately 20,000 MT of TMT bars over a period of 24 months.
Under the MoU, Bajaj Tubular Products has expressed its intention to procure approximately 20,000 MT of TMT bars from the company during the 24 month term.
“The proposed quantity is indicative and is expected to be fulfilled through individual purchase orders based on Bajaj Tubular Products’ actual business and project requirements, mutually agreed supply schedules, product availability and the Company’s production capabilities,” stated the firm in its BSE filing released on Friday.
The management of Rhetan TMT estimates an indicative broader commercial potential of approximately ₹250-300 crore over the 24-month period.
The two companies may mutually agree to a number of aspects including broader relationship, expected product mix, potential order frequency, prevailing and anticipated market realisations and the scope for additional business.
“This MOU reflects our efforts to broaden our business relationships and engage with established players in the steel and infrastructure ecosystem. The proposed arrangement with Bajaj Tubular Products provides an opportunity to build a structured and sustained commercial association, while enabling us to explore additional business opportunities over the 24 month period,” stated Shalin A. Shah, Managing Director, Rhetan TMT Limited.
Rhetam TMT share price trend
The stock ended 4.94% higher at ₹15.93 per share on BSE with a market capitalisation of ₹1,269.42 crore on Monday. The stock had touched an intraday high of ₹15.93 per share and an intraday low of ₹14.43 per share.
Its share price value has declined 35.64% in six months, and around 25.18% in one year. The small-cap stock has surged nearly 5.5% in one year, and around 65% in three years.
