The stock rallied as the company announced a strategic restructuring to consolidate business operations and drive future growth. | Image: iStock
What happened:
Gabriel India stock rocketed to the 20% upper circuit today, shooting from yesterday’s close of about 702 to a tight band between 842.75 and 842.90.
The move kicked in soon after trade began, popping up between 9.39 and 9.42 AM IST on both the NSE and BSE.
Why the leap?
On June 30, 2025, the boards of Asia Investments Pvt. Ltd. (AIPL), Gabriel India, and Anchemco India approved a comprehensive restructuring proposal aimed at simplifying and unifying their operations.
The steps involved:
Merge Anchemco into AIPL with effect from April 1, 2025.
Split AIPL’s automotive portfolio—brake fluids, radiator coolants, diesel-exhaust fluid, adhesives, EV drivetrain parts, transmissions, NVH items, sunroofs, and others—over to Gabriel by April 1, 2026.
Holders of 1,000 AIPL promoter shares will receive 1,158 Gabriel shares in exchange; valuation rests at eight times FY25 EV/EBITDA, and no cash or debt changes hands.
Approval from NCLT, stock exchanges, and the wider shareholder base remains pending, yet completion is expected within the next 10 to 12 months.
Restructuring carries a distinct strategic punch:
Diversification lift: Gabriel moves from a suspension-systems niche toward a broad EV, aftermarket, railway, and global OEM parts group.
Scale without leverage: The combined entity gains size and margin potential while leaving the balance sheet clean and intact.
Longer-range vision backs Anand Group’s goal of reaching ₹50,000 crore in revenue by 2030 and signals clear M&A discipline to investors.
Equity bulls recognize technical strength, as the stock sits at overbought levels near eight-year highs.
