Rama Steel Tubes injects $12.5m into UAE subsidiary for expansion

On November 25, 2025, Rama Steel Tubes Limited’s board of directors approved a significant investment and working capital loan for its wholly-owned subsidiary, RST International Trading FZE (U.A.E). The investment involves acquiring 36,000 shares at AED 1000 each, totaling AED 36 million. This equity infusion aims to support the subsidiary's expansion plans, explore additional business opportunities, and facilitate future growth.

Additionally, the board sanctioned a working capital loan of AED 10 million to RST International Trading FZE (U.A.E) at an 8% p.a. interest rate. This unsecured loan, executed on November 25, 2025, is intended to strengthen the subsidiary's liquidity and ensure smooth day-to-day business operations. The facility is to be repaid within two years from the date provided.

Both the share acquisition and the loan agreement are classified as related party transactions, conducted at arm's-length. RST International Trading FZE, incorporated on February 18, 2015, trades various metal products, construction materials, and industrial equipment. Its turnover for FY 2024-25 was AED 6,823,661. The acquisition is expected to be completed within 4-6 months, with no change in Rama Steel Tubes Limited's 100% shareholding in the subsidiary.