Global Forge: Rama Steel Tubes Welds Future with UAE’s Automech Group

Updated: December 11, 2025 22:52

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Rama Steel Tubes Ltd and its subsidiary will acquire UAE’s Automech Group for AED 296 million, enhancing their international presence and diversifying revenue. The deal, approved on December 11, 2025, strengthens RSTL’s engineering capabilities and marks a strategic step in global expansion.

Rama Steel Tubes Ltd (RSTL) has announced a strategic acquisition of UAE-based Automech Group Holding Limited for a total consideration of AED 296 million (approximately ₹728 crore). The deal, approved by RSTL’s board on December 11, 2025, will see RSTL and its fully owned subsidiary, RST International Trading FZE, jointly acquire 100% of Automech Group. RST International Trading FZE will acquire 78.38% for AED 232 million, while RSTL will acquire the remaining 21.62% for AED 64 million. Around ₹64 crore of the payment will be made through issuance of new shares by RSTL.

This acquisition marks a significant milestone in Rama Steel Tubes’ global expansion strategy, enabling the company to strengthen its footprint in the UAE and diversify its revenue streams. Automech Group is a well-established provider of engineering, fabrication, and industrial services, with expertise in steel fabrication, marine repairs, dewatering pumps, and more.

Notable Updates:

Rama Steel Tubes and its subsidiary will jointly acquire 100% stake in Automech Group Holding Limited.
Total deal value: AED 296 million (₹728 crore), with partial payment via share issuance.
RST International Trading FZE to acquire 78.38%, Rama Steel Tubes Ltd to acquire 21.62%.
The move is aimed at geographic expansion, revenue diversification, and enhanced operational synergy in international markets.

Major Takeaways:

Rama Steel Tubes enters UAE market with a strong engineering and industrial services partner.
The acquisition is expected to boost RSTL’s global presence and long-term value creation.
Automech Group’s capabilities complement Rama Steel Tubes’ existing product portfolio and international ambitions.

Important Points:

The acquisition was approved by the board on December 11, 2025.
Rama Steel Tubes anticipates improved operational alignment and revenue growth post-acquisition.
The deal underscores Rama Steel Tubes’ commitment to strategic global investments.

Source: NSE Corporate Announcement, CNBCTV18, Moneycontrol, Automech Group Official Website

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