Rama Steel Tubes, and unit to acquire Automech Group

12 Dec 2025 , 01:50 PM

Rama Steel Tubes Ltd (RSTL) announced that its board has approved the joint acquisition of Automech Group Holding Limited. As per the details disclosed by the company, it is a UAE-based engineering and industrial services conglomerate.

The transaction value of this deal is fixed at AED 296 million (approximately ₹728 Crore). 

The company further informed the exchanges that the decision received a nod from the company’s board at a meeting held on December 11, 2025.

At around 1.35 PM, Rama Steel Tubes was trading 4.18% lower at ₹10.55 per piece, against the previous close of ₹11.01 on NSE.

As per the transaction structure disclosed by the company, RST International Trading FZE, RSTL’s wholly-owned subsidiary, will pick up 78.38% stake in Automech Group for AED 232 million, while Rama Steel Tubes Ltd will purchase the balance 21.62% for AED 64 million.

The company also added that it will settle ₹64 Crore through a fresh issue of shares of Rama Steel Tubes. This is however, subject to regulatory approvals.

Automech Group is registered under Abu Dhabi Global Market (ADGM). It has eight subsidiaries operating across multiple sectors such as fabrication, precision engineering, construction, dewatering, marine engine services, pumps and drainage solutions, and infrastructure services.

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