Shares of Rhetan TMT debuted on the exchange in September 2022 and locked a 5% cap at Rs 299.05 on the BSE on Monday. The stock remained in the upper circuit for the 10th consecutive trading day. Shares of the steel products company are up 117% over the past month. In contrast, the S&P BSE Sensex has gained nearly 3% over the period.

The stock has rallied 350% over the past three months, compared with a 6% gain for the benchmark index. It also marks a 327% jump from the issue price of Rs 70 per share. The company is engaged in the manufacture of TMT bars and round bars.

In October, Rhetan TMT stated that the price movement of the security was purely market-driven and not the result of any announcement/pending announcement by the company. The company said it would continue to ensure that essential/price-sensitive information is released to exchanges and the public on time as and when required.

Rhetan TMT trades on the BSE SME segment under group ‘M’. The trading, clearing and settlement of the SME segment are carried out on a T+2 basis. Transactions in BSE SME stocks must be settled in mandatory Demat mode.

As of 12:15 pm, 1.7 lakh shares changed hands over the counter, and BS had pending orders for 68,000 shares. The exchange data showed an average of 97,000 shares traded over the past two weeks.

The company proposes to use the net proceeds from the offering to finance capital expenditure for the expansion and modernisation of the Mehsana district in Gujarat and to fund working capital requirements.

According to industry reports, the Balkan TMT rebar market was valued at $1,769 billion in 2017 and is projected to reach $4,065 billion by 2024, at a CAGR of 12.5% ​​from 2018 to 2024. In terms of volume, the market accounted for 2,669,000 tons in 2017 and is expected to reach 5,435 tons by 2024, growing at a CAGR of 10.6% between 2018 and 2024, the company said in the market.

Thermo-mechanically treated (TMT) steel bars are high-strength steel bars used in construction and infrastructure projects due to their superior strength, weldability, corrosion resistance, and other desirable properties.

Different factors, such as increasing demand for low-cost steel bars and a surge in construction projects such as dams and bridges in the Balkans, drive the growth of the TMT rebar market in the Balkans.

“Furthermore, increased government support for steel and coal production and the advantages of TMT bars over torsion bars are key factors contributing to the growth of the TMT bar industry in the Balkans. However, technical limitations such as bendability associated with high-strength High-grade steel bars are expected to hamper the market growth. Conversely, increased investment in the Balkan metal industry by other countries such as China is expected to provide new opportunities for major players,” the company said in DRHP.