Gravita India shares fly 9% on high volumes, acquiring first recycling plant in Europe

The Gravita India share price has rallied over a staggering 95 percent in just three months.

Shares of Gravita India Limited were trading 9 percent higher to Rs 2,538 in the afternoon of September 13 after over 6 lakh shares changed hands in trade, double the one-week and one-month average of 3 lakh shares each. The rise in volumes comes just a day after the company announced it acquired its first recycling unit in Europe.

To be sure, the stock has extended gains for the second trading session and gained over 12 percent during the same period. Gravita India recycles lead, lead products, plastic, and aluminium. They also manufacture lead metal and lead products, aluminium alloys, and plastic granules.

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Its step-down subsidiary Gravita Netherlands BV executed a Memorandum of Understanding (MOU) to acquire a waste tyre recycling plant in Romania from an existing entity based out in the country having a capacity of approx 17,000 MTPA.

Gravita Netherlands BV (GNBV) will undertake this acquisition by setting up a separate Special Purpose Vehicle (SPV) in Romania, where it will hold 80 percent equity with management control, while the remaining equity will be held by other partners based in Romania, the company stated in a filing.

The total investment in this transaction is estimated at approximately Rs 40 crore, with GNBV contributing around Rs 32 crore, subject to comprehensive financial, environmental, and legal due diligence.

GNBV also plans to expand its recycling business operations across the European market, leveraging new opportunities and forming strategic partnerships to drive growth. This acquisition aims to enhance the company’s presence, expand its customer base, and strengthen its competitive position in the European market.

At about 1:45 pm, shares of the company were trading at Rs 2,502, higher by 7.4 percent from the last close on the NSE. The Gravita India share price has rallied over a staggering 95 percent in just three months.

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