Rama Steel Tubes Limited has completed the full utilization of Rs 87.50 crore raised through its private placement of equity shares, according to the final monitoring agency report submitted by Brickwork Ratings for the quarter ended December 31, 2025. The report confirms that the steel pipes and tubes manufacturer has deployed the entire proceeds for its stated objective of business expansion.

Fund Utilization Details

The monitoring agency report reveals that Rama Steel Tubes has utilized Rs 88.13 crore during the quarter for supporting business expansion through acquisition of business entities in India or abroad. The company also utilized an additional Rs 0.48 crore towards reimbursement of issue-related expenses, which was earned through interest on fixed deposits of the issue proceeds.

Private Placement Issue Details

The private placement issue was conducted from September 8, 2025, to September 22, 2025, with equity shares priced at Rs 11.25 per share. Originally, the company had planned to raise Rs 177.30 crore through the allotment of 157.60 million equity shares. However, the final amount received stood at Rs 87.50 crore due to non-receipt of funds from two investor funds within the stipulated period prescribed under the preferential issue process.

Company Background and Compliance

Rama Steel Tubes Limited operates in the manufacturing sector, specializing in steel pipes, tubes, and galvanized iron pipes. The company's promoters include Naresh Kumar Bansal, Kumud Bansal, Richi Bansal, Krati Bansal, Nikhil Naresh Bansal, and Kanika Bansal. The monitoring report confirms that the company has obtained all necessary government and statutory approvals related to the fund utilization objectives.

Monitoring Agency Assessment

Brickwork Ratings, serving as the monitoring agency under SEBI ICDR Regulations, reported no deviations from the disclosed objects of the issue. The report indicates that there were no material deviations observed, and all utilization was in accordance with the disclosures made in the offer document. The company's Chief Financial Officer, Mr. Rajeev Kumar Agarwal, confirmed through email dated February 11, 2026, that no further funds will be raised under this issue.

Final Status

With the complete utilization of the raised funds, this marks the conclusion of the private placement monitoring process. The company successfully deployed the proceeds for its intended purpose of business expansion, with no unutilized amounts remaining as of December 31, 2025. The monitoring agency has submitted its second and final report, confirming the successful completion of fund deployment as per the stated objectives.

Rama Steel Tubes Limited announced major corporate developments following its Board meeting held on January 20, 2026, including a key leadership appointment and significant equity share issuance for strategic acquisition purposes.

Leadership Expansion with Industry Veteran

The Board appointed Mr. Rakesh Chaturvedi (DIN: 01107166) as Additional Executive Director, effective January 20, 2026. The appointment follows the recommendation of the Nomination and Remuneration Committee and is subject to shareholder approval at the upcoming Extraordinary General Meeting.

Mr. Chaturvedi brings extensive steel industry expertise, having served as Executive Vice President (Domestic Marketing) and worked for 13 years at Bhushan Steel Limited. His progressive experience spans over four decades in the steel sector.

Major Equity Share Issuance for Strategic Acquisition

The Board approved a substantial equity share issuance to facilitate the acquisition of a strategic stake in Automech Group Holding Limited. The transaction involves issuing equity shares through preferential allotment to fund the company's expansion strategy.

The equity shares are priced at ₹10.25 each, including a premium of ₹9.25 per share, determined in accordance with SEBI (Issue of Capital and Disclosure Requirements) Regulations 2018. The entire allotment will go to M/s Jagjit Gouri, classified as a non-promoter entity.

Regulatory Compliance and Approval Process

Both major decisions require comprehensive regulatory approvals and shareholder consent. The Board has authorized executives and the Board sub-committee to finalize the Extraordinary General Meeting notice for seeking shareholder approval on these matters.

The equity share issuance is subject to:

• Shareholder approval through Extraordinary General Meeting
• Approval from applicable regulatory authorities
• Compliance with SEBI (ICDR) Regulations and other applicable laws

Meeting Details and Next Steps

The Board meeting commenced at 4:00 p.m. and concluded at 5:30 p.m. on January 20, 2026. The company will submit relevant details regarding the Extraordinary General Meeting to the exchanges separately in due course. All information has been made available on the company's website at www.ramasteel.com as per regulatory requirements under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.