Rama Steel Tubes (RSTL) has planned to acquire Automech Group, a UAE-based multi-award-winning provider of high-precision manufacturing services, machines, and components for a total consideration of AED 296 million (around Rs 728 crore). This strategic transaction marks a defining milestone in RSTL's journey to diversify into high-value engineering services and strengthen its presence across the GCC and MENA regions.
Post-acquisition, RSTL expects consolidated total revenue to rise by over 113% (FY27E post-acquisition expected figures vs FY25 reported consolidated figure) from Rs 1,065 crore in FY25 to approximately over Rs 2,200 crores by FY27E, with EBITDA margins improving from around 4% to around 10%. In addition, this acquisition will give a significant boost to Rama Steel standalone financials by shifting part of the production chain from the Automech's UAE operation to Rama Steel IS domestic Indian manufacturing operation.
Rama Steel Tubes is a leading player engaged in the manufacturing and trading of Steel Tubes & Pipes and Rigid PVC (Poly Vinyl Chloride) & G.I. (Galvanised Iron) Pipes in India as well as in the world.
| Company Name | CMP |
|---|---|
| Tata Steel | 211.30 |
| JSW Steel | 1264.30 |
| SAIL | 184.70 |
| Jindal Stainless | 768.20 |
| APL Apollo Tubes | 1903.45 |
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