Rama Steel Tubes Ltd

🚀 Rama Steel Tubes Expands into UAE with Rs. 728 Crore Acquisition

- RSTL acquires 100% stake in UAE’s Automech Group for AED 296M (~Rs. 728 crore).

- Deal structured via RSTL’s UAE subsidiary (78.38% stake) & direct holding (21.62%).

- Partially funded via share swap, aims to expand Middle East presence.

- Diversification into high-margin engineering & fabrication segments.

- ICRA updates ratings: Long-term facilities to [ICRA]BB+ (Watch developing), short-term to [ICRA]A4+.

- Risks noted: Debt pressure, execution & integration challenges.

- Current production capacity: 2,94,000 MTPA across Sahibabad, Khopoli & Anantpur plants.

- ICRA to monitor financing & regulatory approvals for future rating actions.