Gabriel India to Buy 28.99% Stake in HL Mando Anand from Promoter for Rs 2,231 Cr

Gabriel India will acquire a 28.99% stake in HL Mando ANAND India Pvt Ltd from its promoter - Asia Investments Pvt Ltd – in a deal worth Rs 2,231 crore. This comes as the auto component major looks to consolidate the ANAND Group's automotive businesses under the listed company.

The company will buy 4.81 crore equity shares of HL Mando ANAND India, which makes steering, braking and suspension systems for passenger vehicles. The acquisition is subject to shareholder and regulatory approvals.

Gabriel said the consideration will be paid through a mix of cash and shares. It will pay Rs 350 crore in cash, while the remaining Rs 1,881 crore will be settled by issuing preferential shares to Asia Investments, its promoter and holding company.

As part of the transaction, Gabriel will issue 1.44 crore equity shares to Asia Investments at an issue price of Rs 1,305.89 per share. Following the allotment, the newly issued shares will represent 7.52% of Gabriel India's expanded share capital.

HL Mando ANAND India is a joint venture between South Korea's HL Mando Corporation, which holds 71.01%, and Asia Investments, which owns the remaining 28.99% stake. 

Following the transaction, Gabriel India will replace Asia Investments as the Indian shareholder, while HL Mando Corporation will continue to hold its existing stake.

Gabriel said the acquisition is a related-party transaction because the stake is being purchased from its promoter. The company said the deal would be carried out on an arm's length basis, with the consideration determined through an independent valuation.

The company described the acquisition as a strategic step to position Gabriel India as the ANAND Group's growth vehicle and business consolidation platform for the automotive components sector, to create long-term value for shareholders.