Rathi Steel & Power shares surge 13% following preferential share conversion

Rathi Steel & Power Limited's stock witnessed a significant jump of 13.82% on March 24, 2025, closing at ₹34.93, after the company's board approved the conversion of preferential shares into equity shares. This announcement caused the stock to surge, continuing the momentum with a 24.84% increase over the past five trading sessions.

According to the exchange filing, the company allotted 13,00,001 equity shares, each with a face value of ₹10, in exchange for the conversion of 15,05,265 1% Optionally Convertible Redeemable Preference Shares, which were initially issued on February 22, 2024. The conversion price was set at ₹55 per equity share, directed to PCR Holdings Private Limited, an entity controlled by the company's promoters.

As a result, Rathi Steel & Power's paid-up equity share capital increased to ₹86.36 crore, divided into over 8.63 crore equity shares.

Over the last five years, Rathi Steel & Power has delivered an impressive 770% return to its investors, making it a multibagger stock. However, the stock has experienced a 36.49% decline over the past year. Despite this, the recent rally indicates strong recovery potential. The stock hit its 52-week high of ₹97.81 in July 2024 and a low of ₹24.50 in March 2025.

For investors, this upward movement is noteworthy, but it's essential to consult certified experts before making any investment decisions.