Rama Steel Unit to Acquire UAE’s Automech for Rs 728 Crore; Stock Down 3.5%

Shares of Rama Steel Tubes Ltd (RSTL) fell 3.5% after touching a day’s high of Rs 11.29 on 12th December. This happened even as the company said it has approved the joint acquisition of Automech Group Holding Limited. This is a UAE-based engineering and industrial services conglomerate, for AED 296 million (approximately Rs 728 crore). The board cleared the decision at its meeting on 11th December 2025.

Under the deal structure, RST International Trading FZE, a wholly owned subsidiary of RSTL, will acquire 78.38% of Automech Group for AED 232 million. Rama Steel Tubes Ltd will buy the remaining 21.62% for AED 64 million. This amount will be paid through the issuance of fresh RSTL equity shares, subject to approvals.

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

Rama Steel Tubes said the acquisition marks its strategic entry into the UAE market. It will help expand its geographic presence, diversify its revenue streams, and create operational synergies across its global businesses. The company noted that the move is aimed at building long-term sustainable value.

RSTL added that the transaction is not a related-party deal under SEBI’s LODR rules. The final issue price and share exchange ratio for the equity portion will be set after an independent valuation.

Once the transaction is completed, Rama Steel Tubes and its subsidiary will jointly hold 100% ownership of Automech Group and its eight operating companies.

At 12:10 PM, shares of Rama Steel Tubes were trading 3.54% lower at Rs 10.62 on NSE.

Unicorn Signals leverages advanced AI technology to provide you with powerful market predictions and actionable stock scans. Download the app today and 10x your trading & investing journey!