Rama Steel Tubes Limited (RSTL) has announced that ICRA Limited has placed its total bank loan facilities amounting to ₹110 crore on "Rating Watch with Developing Implications". Specifically, the long-term fund-based cash credit facility of ₹80 crore, previously rated [ICRA]BB+(Stable), has been revised to [ICRA]BB+ with a "Rating Watch with Developing Implications". Similarly, the short-term fund-based cash credit facility of ₹30 crore, previously rated [ICRA]A4+(Stable), has been revised to [ICRA]A4+ with a "Rating Watch with Developing Implications". This rating action follows RSTL's disclosure on December 11, 2025, regarding the joint acquisition of 100% stake in UAE-based Automech Group Holding Limited for approximately ₹728 crore. The acquisition, to be executed through its wholly-owned UAE subsidiary and RSTL directly, is expected to expand RSTL's presence in the Middle East and diversify its product mix. However, ICRA notes that the substantial transaction size, partially debt-funded, could pressure leverage and coverage metrics. Execution and integration risks are also key monitorables.