Gabriel India shares slide 6% as company announces ₹3,166 crore dual acquisition deal

Gabriel India Limited's shares fell sharply on Wednesday, dropping 5.95 per cent to ₹1,400 on the NSE, after the auto components maker announced two major acquisitions totalling approximately ₹3,166 crore under what it has internally named "Project Jupiter."

The Pune-based company, part of the Anand Group, said it will acquire a 28.9 per cent stake in HL Mando Anand India, a joint venture between South Korea's HL Mando Corporation and Gabriel's promoter entity Asia Investments Private Limited, for approximately ₹2,231 crore. Of this, roughly ₹1,881 crore will be settled through a preferential allotment of Gabriel shares to AIPL, while the remaining ₹350 crore will be paid in cash.

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The share swap is based on a floor price of ₹1,305.89, calculated as the higher of 10-day and 90-day VWAP preceding July 20, 2026. The swap ratio works out to 355 Gabriel shares for every 1,000 shares of HL Mando Anand. The deal values HL Mando Anand at an equity value of approximately ₹7,695 crore, implying an EV/Adjusted EBITDA multiple of about 11.3 times on FY26 figures. Independent valuers KPMG and BDO were engaged for the valuation exercise. The transaction requires approvals from Gabriel's board, shareholders, and stock exchanges and is expected to close in approximately three to four months.

The second transaction involves acquiring a 29.99 per cent stake in HL Klemove India, a subsidiary of South Korea's HL Klemove Corporation that manufactures ADAS systems and automotive electronics, for approximately ₹935 crore in cash. The deal will be executed in two tranches, 75 per cent upfront and 25 per cent deferred, with the first tranche targeted to close by September 15, 2026. This acquisition will be funded through a combination of internal accruals and debt.

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HL Mando Anand, established in 1997, is one of India's largest manufacturers of steering systems, brakes, and suspensions, operating three plants near Chennai with over 4,600 employees. It reported revenue of ₹5,886 crore and PAT of ₹358 crore in FY26.

Separately, Gabriel also released its Q1 FY27 standalone financial results. Revenue for the quarter ended June 30, 2026, grew 18.9 per cent year-on-year to ₹1,274 crore. EBITDA stood at ₹107 crore, up 7.4 per cent year-on-year, though margins compressed slightly to 8.4 per cent. PBT rose 27.6 per cent year-on-year to ₹99.8 crore. On a full-year basis, FY26 standalone revenue grew 25.6 per cent to ₹4,577 crore.

The stock touched a 52-week high of ₹1,519.90 just a day earlier, on July 21, before Wednesday's sharp selloff. Gabriel's total market capitalisation stood at approximately ₹20,168 crore at Wednesday's price.