The acquisition, a related-party transaction, involves the purchase of a 29% stake in HL Mando Anand India from Asia Investments Pvt. Ltd. at ₹463.50 per share.
The deal will be funded through a mix of preferential share allotment and cash. Gabriel India will issue equity shares worth ₹1,881 crore to Asia Investments at ₹1,306 per share, while the remaining ₹350 crore will be paid in cash.
Following the transaction, promoter Anand Investments Pvt. Ltd.’s stake in Gabriel India will increase to 46.98% from 42.67%.
For the June quarter, Gabriel India reported a 2% year-on-year increase in consolidated net profit
at ₹107.4 crore, while revenue from operations rose 15.5% to ₹1,425.7 crore.
Operating performance remained mixed. EBITDA increased 5% year-on-year to ₹124 crore from ₹118 crore, but the EBITDA margin contracted to 8.7% from 9.6% a year ago. Gross margin also narrowed to 25.7% from 27.1%, indicating pressure from input costs.
On a sequential basis, net profit declined 9.2%, while revenue increased 3.3%.
Separately, the company also approved the acquisition of a 30% stake (minus one share) in HL Klemove India Pvt. Ltd. from South Korea’s HL Klemove Corporation for the Indian rupee equivalent of ₹948.2 crore.
The transaction marks Gabriel India’s entry into the autonomous driving and automotive electronics segment, with the joint venture set to develop advanced driver assistance systems (ADAS), radar, cameras, lidar and automotive electronic control units for the Indian market.
Shares of Gabriel India were trading at ₹1,399.90 on Wednesday morning, down 6%. The stock has, however, gained about 35% so far this year and more than 42% over the past 12 months.
