Shares of Gabriel India surged to a new all-time high and hit the 20 percent upper circuit on July 1 after the company announced a comprehensive scheme of arrangement. The plan involves the amalgamation of Anchemco India Pvt Ltd into Asia Investments Pvt Ltd, followed by the demerger of Asia Investments' automotive undertakings into Gabriel India.
The move is part of the group’s broader strategy to achieve its Rs 50,000 crore revenue target by 2030.
Under this scheme, Anchemco India, which manufactures and sells automotive consumables such as brake fluid, radiator coolants, and diesel exhaust fluid, will first be merged into Asia Investments.
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Following this, Asia Investments' automotive business — which includes Anchemco and stakes in firms like Dana Anand, Henkel Anand, and ACYM — will be spun off and eventually merged into Gabriel India. Asia Investments' remaining non-automotive businesses will continue to be held by the original entity post-demerger.
As part of the deal, Gabriel India will issue 1,158 shares for every 1,000 shares held by promoters of Asia Investments Pvt Ltd. The transaction is valued at 8 times FY25 Enterprise Value to EBITDA.
The proposed restructuring is subject to approvals from the company’s board, creditors, stock exchanges, National Company Law Tribunal (NCLT), and shareholders. If all clearances are secured on time, the transaction is expected to conclude within the next 10 to 12 months.
Gabriel said the move is a strategic step toward operational consolidation, enabling the company to scale without adding debt. It also positions the firm to grow both domestically and globally.
This isn’t Gabriel’s first such initiative. The company has been actively pursuing acquisitions and internal restructurings involving promoter-linked entities, in line with its long-term objective to enhance efficiency and boost investor confidence.
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