Rama Steel Tubes to acquire 21.62% stake in Automech Group for AED 64 Million
Rama Steel Tubes Limited will acquire a 21.62% stake in Automech Group Holding Limited for AED 64 million (approx. ₹157 Crores) as part of a joint acquisition of 100% stake for AED 296 million. The acquisition is expected to be completed in 5-6 months.
The acquisition represents a significant strategic move for the company, involving a substantial investment and aiming to expand its global footprint and diversify revenue streams.
The acquisition is strategic, aiming for geographical expansion and diversification, which is positive for the company's growth prospects.
Rama Steel Tubes Limited has announced the approval of a share purchase agreement to jointly acquire 100% of Automech Group Holding Limited. The acquisition, approved at a Board Meeting held on December 11, 2025, will see RST International Trading FZE, a wholly-owned subsidiary, acquire 78.38% for AED 232 million, while Rama Steel Tubes Limited will acquire the remaining 21.62% for AED 64 million.
The aggregate consideration for the entire 100% stake in Automech Group Holding Limited, which comprises eight subsidiaries and operates across diversified sectors like steel fabrications, construction, engineering, and energy, is AED 296 million (approximately ₹728 Crores).
This strategic move aims to expand Rama Steel Tubes' geographical presence in UAE, GCC, and European regions, diversify revenue streams, achieve operational synergies, and create long-term value. The acquisition is expected to be completed within 5-6 months. The AED 64 million stake for Rama Steel Tubes Limited will be adjusted/payable against the issuance of fresh equity shares, subject to necessary approvals.
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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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See the model portfoliosA plain-language summary of a public exchange filing by Rama Steel Tubes Limited. Read the original for the full detail.