Rama Steel Tubes to Acquire 100% Stake in Automech Group for AED 296 Million
Rama Steel Tubes will jointly acquire 100% of Automech Group Holding Limited for AED 296 million (approx. ₹728 Crore). RSTL will acquire a 21.62% stake for AED 64 million, payable via equity shares. The acquisition aims for geographical expansion and revenue diversification. Completion is expected in 5-6 months.
The acquisition involves a significant financial consideration and will broaden the company's operational scope into new sectors and geographies, indicating a substantial impact on its business.
The acquisition is strategic, aiming to expand geographical presence, diversify revenue streams, and achieve operational synergies, which are positive indicators for future growth.
Rama Steel Tubes Limited (RSTL) announced today, December 11, 2025, that its Board of Directors has approved the execution of a share purchase agreement to jointly acquire 100% of Automech Group Holding Limited. The acquisition will be made in collaboration with RST International Trading FZE, a wholly-owned subsidiary of RSTL.
The aggregate consideration for the acquisition is AED 296 million (approximately ₹728 Crores). RST International Trading FZE will acquire a 78.38% stake for AED 232 million, while RSTL will acquire the remaining 21.62% stake for AED 64 million. The consideration for RSTL's stake will be adjusted/payable against the issuance of fresh equity shares, subject to necessary regulatory approvals.
Automech Group Holding Limited, registered under the Abu Dhabi Global Market, comprises eight subsidiaries and operates in diverse sectors including Steel Fabrications, Assembly, Construction and Installation, Precision Engineering, Contracting Services, Dewatering Management & Land Draining, Marine Engine Services, Manufacturing, Energy, Engineering, and Infrastructure. The company's consolidated turnover was AED 192.30 million as of December 31, 2024, with assets valued at AED 198.73 million on the same date.
This strategic acquisition aims to diversify RSTL's revenue streams, achieve operational synergies, and strengthen its presence across the UAE, GCC, and European regions. The acquisition is expected to be completed within 5-6 months. The issuance of fresh equity shares for RSTL's portion of the consideration will be determined based on a valuation by an independent registered valuer.
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Rama Steel Tubes Limited filed this with the NSE as a statutory disclosure, categorised under acquisition. 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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