Metal Stock In Spotlight On Strengthening Production Capacity & Increase In FPIs Stake

Rathi Steel & Power Limited reported that it has restarted commercial production of TMT Bars at its Ghaziabad plant, which signals the recovery of the company's operational growth. The Company made the announcement over the Exchange on Saturday that the TMT Rolling Mill Division at the A-3, South of G.T. Road, Industrial Area, Ghaziabad, became operational on the 5th of April, 2025.

This comes as the company continues to focus on enhancing its capability to produce and add value along its internal value chain. The revival of the TMT Bar manufacturing comes along with Rathi Steel & Power trying to implement an aggressive expansion strategy to enhance the scope and operational productivity of the company.

On March 22nd of this year, the company stated that its promoter entity PCR Holdings (formerly Archit Securities) had increased its stake in Rathi Steel & Power by 0.21 percent through the purchase of 45,000 equity shares. This transaction of ₹85.06 crore through open market deals puts the promoters in confidence with the company's growth story. Post this transaction, the promoter holding sits at 40.32 percent, with Foreign Institutional Investors (FIIs) at 8.94 percent and Domestic Institutional Investors (DIIs) at 2.53 percent.

Rathi Steel & Power is currently pursuing a forward integration project at its Ghaziabad facility and plans to spend up to ₹50 crore on it. This facility will manufacture downstream products for wire rods, such as bright bars and wires, expanding the company's offerings. The initiative is anticipated to create new market opportunities in fast-growing industries such as automotive (electric vehicles and batteries), defence, solar engineering, and household products.

The company seeks to reduce reliance on external demand by utilizing a portion of its own internal consumption for its production processes. This strategic shift to vertical diversification will allow Rathi to serve a larger scope of industrial clientele and enhance profit margins through the consumption of value-added products. The project will be carried out in stages, paying attention to the socio-technical and market factors, as well as the prevailing conditions.

In terms of market performance, Rathi Steel & Power shares have yielded impressive long-term returns, delivering over 675 per cent gains over the past five years. Meanwhile, the stock experienced a decline exceeding 51 per cent during the preceding year. On the positive side, the stock seems to be on the road to recovery as it increased 4.8 per cent in the last one-month period of 2025.

Starting operations in 1971, Rathi Steel and Power Limited emerged as a prominent business in the Indian steel industry, engaged in the production of wire rods, steel flats and other steel products. Ghaziabad-based Rathi Steel & Power Ltd has a state-of-the-art manufacturing facility with a steel-melting shop having more than 90,000 tons per annum capacity of stainless steel billets and 2,00,000 tons of annual rolling capacity. ONGC, Reliance, L&T, Indian Railways, BHEL, etc., are some of their customers.