Rama Steel Tubes, subsidiary to acquire UAE-based Automech Group for ₹728 cr

Rama Steel Tubes Ltd (RSTL) has approved the joint acquisition of Automech Group Holding Limited, a UAE-based engineering and industrial services conglomerate, for AED 296 million (approximately ₹728 crore). The decision was cleared by the company’s board at a meeting held on December 11, 2025.

Under the transaction structure, RST International Trading FZE, RSTL’s wholly-owned subsidiary, will acquire 78.38% of Automech Group for AED 232 million, while Rama Steel Tubes Ltd will purchase the remaining

21.62% for AED 64 million. The company said the ₹64 crore equivalent will be settled through the issuance of fresh equity shares of RSTL, subject to approvals, stated the exchange filing.

Automech Group, registered under the Abu Dhabi Global Market (ADGM), comprises eight subsidiaries operating across diverse sectors, including steel fabrication, precision engineering, construction, dewatering, marine engine services, pumps and drainage solutions, and infrastructure services.

The acquisition marks Rama Steel Tubes’ strategic entry into the UAE market, with the company stating that the deal will support geographic expansion, diversify revenue streams, and unlock operational synergies across its international businesses. The company added that the move is aimed at building long-term sustainable value.

RSTL clarified that the transaction does not fall under related-party dealings as per SEBI’s LODR norms. The final issue price and share exchange ratio for the equity allotted as part of the consideration will be determined based on an independent valuation.

With the completion of the transaction, Rama Steel Tubes and its subsidiary will jointly hold 100% ownership of Automech Group Holding Limited and its eight operating companies.

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Shares of Rama Steel Tubes Ltd ended higher on Thursday, December 11, by 8.51% at ₹10.97 on the NSE.