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An announcement from Rama Steel Tubes Ltd. ( (IN:RAMASTEEL) ) is now available.
ICRA has placed Rama Steel Tubes Ltd.’s Rs 110-crore bank facilities on ‘Rating Watch with Developing Implications’, revising the outlook on its long-term [ICRA]BB+ rating and maintaining its short-term [ICRA]A4+ rating, following the company’s proposed acquisition of 100% of UAE-based Automech Group Holding Limited. The planned AED 296-million (about Rs 728 crore) deal, partly funded by debt and partly via share swap, is expected to significantly expand Rama Steel Tubes’ presence in the Middle East and diversify it into higher-margin engineering and fabrication segments, but also raises concerns over leverage, coverage metrics and execution and integration risks, prompting closer monitoring by the rating agency.
More about Rama Steel Tubes Ltd.
Rama Steel Tubes Ltd. is an Indian manufacturer and exporter of ERW steel tubes, both black and galvanised, operating in the iron and steel sector. The company focuses on supplying steel tubes to domestic and international markets and is expanding its footprint through overseas subsidiaries, including in the UAE, to broaden its product mix and geographic reach.
Average Trading Volume: 640,532
Technical Sentiment Signal: Sell
Current Market Cap: 15.72B INR
For detailed information about RAMASTEEL stock, go to TipRanks’ Stock Analysis page.