Acquisitions11 Dec 2025, 07:31 pm
Rama Steel Tubes to Acquire Automech Group UAE for Rs. 728 Crores, Boosting Financial Performance
AI Summary
Rama Steel Tubes Limited, a leading manufacturer of steel pipes and tubes, has announced its plan to acquire Automech Group, a UAE-based high-precision manufacturing services provider, for a total consideration of AED 296 million (Approx Rs. 728 Crores). The acquisition is expected to significantly boost Rama Steel's financial performance, with consolidated total revenue projected to rise by over ~113% and EBITDA margins improving from ~4% to ~10%. The transaction is expected to close by 6 months, subject to customary approvals.
Key Highlights
- RSTL's consolidated total revenue expected to rise by over ~113% from Rs. 1,065 crores in FY25 to approximately over Rs. 2,200 crores by FY27E
- EBITDA margins improving from ~4% to ~10%
- Consolidated EBITDA expected to nearly ~415% from Rs. 46 crores in FY25 to expected Rs. 236 crores in FY27E
- Automech's standalone revenues are Rs. 611 crores and profit stood at Rs. 101 crores in FY25
- The acquisition is expected to close by 6 months, subject to customary approvals