Rama Steel Tubes Approves Capital Hike, Acquisition Deal Amendments, and Preferential Issuance
Rama Steel Tubes approved increasing authorized capital to ₹250 Crores. The company amended its acquisition deal for Automech Group Holding Limited, extending completion to December 15, 2026. Additionally, it approved preferential issuance of equity shares and warrants, raising up to ₹140 Crore (equity), ₹166.40 Crore (equity swap), and ₹40 Crore (warrants).
The decisions involve a substantial increase in authorized share capital, a strategic acquisition, and significant fundraising activities, all of which are expected to have a material impact on the company's financial structure and future operations.
The company has approved significant corporate actions including a capital increase, amendments to a strategic acquisition agreement, and substantial equity fundraising through preferential issues and warrants, indicating positive growth and expansion plans.
Rama Steel Tubes Limited announced key decisions from its Board Meeting held on September 22, 2026. The Board approved a proposal to increase the company's Authorised Share Capital from ₹200 Crores to ₹250 Crores, comprising 250 Crores Equity Shares of ₹1 each. This increase is subject to shareholder approval.
Furthermore, the Board approved amendments to the Share Purchase Agreement (SPA) dated December 11, 2025, related to the joint acquisition of 100% stake in Automech Group Holding Limited. Rama Steel Tubes Limited and its wholly-owned subsidiary, RST International Trading FZE, are jointly acquiring Automech Group. The original agreement was for a total consideration of AED 296 million, with RST International Trading FZE acquiring 78.38% for AED 232 million and Rama Steel Tubes Limited acquiring 21.62% for AED 64 million. Amendments were made, including an extension of the completion date for the transaction to December 15, 2026.
In a significant move to fund these activities, the company also approved the issuance of equity shares and convertible warrants on a preferential basis. This includes the issuance of up to 28,00,00,000 equity shares at ₹5 per share (including a premium of ₹4), aggregating up to ₹140 Crores, to Promoter/Promoter Group and Non-Promoter categories. Additionally, up to 33,28,00,000 equity shares at ₹5 per share, aggregating up to ₹166.40 Crores, will be issued to Mr. Jagjit Gouri as consideration for acquiring a 21.62% stake in Automech Holding Group. The company also approved the issuance of up to 8,00,00,000 convertible warrants at ₹5 per warrant, aggregating up to ₹40 Crores, to the Promoter category. The Board also approved convening an Extraordinary General Meeting (EGM) to seek shareholder approval for these proposals. The Board Meeting commenced at 4:15 p.m. and concluded at 05:05 p.m.
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Rama Steel Tubes Limited filed this with the NSE as a statutory disclosure, categorised under other corporate actions. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
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