Gabriel India will acquire a 28.99% stake in HL Mando Anand India from its promoter, Asia Investments Pvt Ltd. The transaction is valued at Rs 2,231 crore. This acquisition is part of two transactions totaling over Rs 3,165 crore.
The company will pay Rs 350 crore in cash. It will settle the remaining balance by issuing new preferential shares to the promoter entity. This move increases the promoter's stake in Gabriel India from 42.67% to approximately 46.98%. HL Mando Anand manufactures steering, braking, and suspension systems.
Gabriel India shares fell as much as 8% during trading on July 22. The stock reached a session low of Rs 1,362.40. Investor concerns regarding the valuation of the related-party transaction overshadowed the company's Q1 results.