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Gabriel India Share Price Hits 20% Upper Circuit After Strategic Business Restructuring Announcement

Written by: Team Angel OneUpdated on: 1 Jul 2025, 3:43 pm IST
Gabriel India share price hits 20% upper circuit after unveiling a structural reorganisation aimed at simplifying operations and scaling business to ₹50,000 crore.
Gabriel India Share Price Hits 20% Upper Circuit After Strategic Business Restructuring Announcement
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Gabriel India's share price witnessed a sharp jump of 20% on July 1, 2025, following the announcement of a major restructuring plan that includes the merger of Anchemco India Pvt Ltd with Asia Investments and the subsequent demerger of auto businesses into Gabriel India. 

Gabriel India’s Reorganisation Strategy Unveiled

Gabriel India has initiated a multi-layered restructuring plan to reconfigure its corporate architecture. First, Anchemco India Pvt Ltd (Anchemco), a player in auto fluids including brake fluids, radiator coolants and diesel exhaust fluids, will merge with Asia Investments Pvt Ltd (AIPL). 

Following this, the automotive operations and select investments of AIPL, such as Dana Anand, Henkel Anand and ACYM, will be carved out and merged into Gabriel India. This transformation is aimed at creating a focused, auto-centric structure while retaining non-auto verticals under AIPL.

Timeline and Approvals in Focus

The scheme will require approvals from multiple stakeholders, including the company’s board, stock exchanges, creditors, the National Company Law Tribunal and shareholders. If these approvals proceed as scheduled, the completion is expected within 10 to 12 months. 

The company has marked April 1, 2025, as the appointed date for the merger of Anchemco into AIPL, with the demerger and subsequent merger into Gabriel India to commence from April 1, 2026.

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Shareholder Exchange and Deal Valuation

Under the agreed structure, Gabriel India will issue 1,158 shares for every 1,000 shares held by promoters of AIPL. This conversion ratio reveals Gabriel’s valuation benchmarked at 8 times EBITDA for FY25, keeping the transaction asset-light with no additional debt or capital outflow. By consolidating its automotive operations, Gabriel intends to broaden its domestic and global footprint in the components space.

Rationale Behind the Restructuring 

This restructuring stems from a need to simplify an inherently layered group structure and address ongoing investor curiosity around product expansion and M&A focus. Gabriel highlighted that the deal not only simplifies governance and management but also enlarges the business base organically without leverage, thus maintaining financial discipline amidst expansion.

Gabriel India Share Price Hits 20% Upper Circuit 

On July 1, 2025, Gabriel India share price opened at ₹842.75 on NSE, above the previous close of ₹702.30. The stock is trading at ₹842.75 as of 9:39 AM. The stock registered an upper circuit of 20.00%.

Over the past week, it has moved up by 32.24%, over the past month, it has moved up by 29.50%, and over the past 3 months, it has moved up by 42.28%.

Conclusion

Gabriel India’s strategic restructuring signals a significant step towards its ₹50,000 crore revenue goal by 2030. The new structure aims to create a strong, unified automotive platform, offering better scalability, enhanced transparency and improved stakeholder confidence. A disciplined, equity-based approach underlines management's intent to drive growth responsibly.

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in securities are subject to market risks. Read all related documents carefully before investing.

Published on: Jul 1, 2025, 10:03 AM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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