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News Topical, Digital Desk : Rama Steel Tubes Ltd (RSTL) has approved the joint acquisition of UAE-based engineering and industrial services group Automech Group Holding Limited. The company's board gave the approval in its meeting held on 11 December 2025. The total deal value is AED 296 million (approximately ₹728 crore). As per the transaction structure, RST International Trading FZE, a wholly-owned subsidiary of RSTL, will acquire 78.38% stake in Automech Group for AED 23.2 crore, while Rama Steel Tubes Ltd will acquire the remaining 21.62% stake for AED 6.4 crore. The company said that approximately ₹64 crore will be paid by issuing new shares of RSTL.
Company's entry into UAE market This acquisition will strategically enter Rama Steel Tubes into the UAE market. The company said that this deal will help in geographical expansion, diversification of revenue and increase operational synergies in international businesses. According to the company, this move is focused on long-term value creation. RSTL clarified that this transaction does not fall under the category of related party transaction as per SEBI's LODR norms. The final issue price and share exchange ratio for the equity to be issued as part of the deal will be decided based on an independent valuation. Automech Group, registered in the Abu Dhabi Global Market (ADGM), is a group of eight companies that operate in diverse sectors such as steel fabrication, precision engineering, construction, dewatering, marine engine services, pump and drainage solutions, and infrastructure services. After the completion of the transaction, Rama Steel Tubes and its subsidiary will jointly own 100% of Automech Group Holding Limited and its eight operating companies.
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