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, a manufacturer and exporter of ERW steel tubes, announced its financial results for the third quarter ended December 31, 2025. The company demonstrated mixed performance with revenue growth offset by margin pressures during the quarter.

Financial Performance Overview

The company's standalone financial results showed revenue growth alongside profitability challenges. Total income including other income reached ₹24,680.76 lakhs for Q3FY26 compared to ₹23,090.53 lakhs in Q3FY24.

Nine-Month Performance

For the nine months ended December 31, 2025, the company showed stronger year-over-year growth across key metrics. Revenue from operations increased significantly to ₹76,584.10 lakhs from ₹60,262.37 lakhs in the corresponding period of FY24.

Segment-wise Analysis

The company operates through two primary business segments: manufacturing of steel pipes and trading of building materials and steel products. Manufacturing segment revenue for Q3FY26 was ₹15,571.83 lakhs while trading segment contributed ₹8,830.51 lakhs to total revenue.

Major Corporate Development

During the quarter on December 11, 2025, Rama Steel Tubes executed a significant share purchase agreement for the joint acquisition of 100% stake in Automech Group Holding Limited, registered under the Abu Dhabi Global Market (ADGM).

Consolidated Results

On a consolidated basis, the company reported revenue from operations of ₹28,938.28 lakhs for Q3FY26 compared to ₹27,517.36 lakhs in Q3FY24. Consolidated net profit for the quarter was ₹178.08 lakhs versus ₹554.93 lakhs in the previous year.

Regulatory Compliance

The company noted its compliance with new labour codes consolidated by the Government of India on November 21, 2025. Management assessed that there would be no material impact on operations from these regulatory changes. The company also completed divestment of its stake in Onix IPP Private Limited during the quarter for ₹10,000.

The financial results were approved by the Board of Directors on February 14, 2026, and have been subject to limited review by statutory auditors who expressed an unqualified opinion.