Rama Steel Tubes Ltd has approved an equity investment of AED 36 million in its wholly-owned UAE subsidiary, RST International Trading FZE. The move, alongside a working capital loan of AED 10 million, aims to accelerate expansion, support new business opportunities, and reinforce the company’s global growth strategy.
Rama Steel Tubes Ltd has announced a significant capital commitment to its UAE operations, underscoring its ambition to expand international presence and strengthen subsidiary performance.
Notable Updates:
• Equity Infusion: AED 36 million invested through acquisition of 36,000 shares at AED 1,000 each.
• Ownership Status: Rama Steel Tubes will continue to hold 100% shareholding in RST International Trading FZE.
• Timeline: Completion expected within 4–6 months, ensuring smooth execution of expansion plans.
Major Takeaways:
• Strategic Purpose: The investment is designed to support expansion initiatives, explore new business opportunities, and enhance future growth prospects.
• Additional Support: A working capital loan of AED 10 million has also been approved, carrying an interest rate of 8% per annum.
• Global Outlook: This move highlights Rama Steel Tubes’ commitment to strengthening its footprint in the Middle East market, leveraging Dubai’s Jebel Ali Free Zone as a hub for international trade.
Sources: FilingReader News Wire, BSE India (Regulation 30 Announcement)