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.
