Gabriel India Share Price: 58% Return In A Week! Why Stock Of Auto Comp Maker Is Zooming?

Gabriel India Stock Price: The shares of Anand Group's flagship company Gabriel India Ltd surged 20 per cent to hit a 52-week high of Rs 1,011.45 on Wednesday after increasing 20 percent during the previous trading session on BSE Sensex index.

The auto component manufacturer has been witnessing an upside movement in its stock price after it announced a scheme for the amalgamation of Anchemco India Pvt. Ltd. into Asia Investments Pvt. Ltd. (AIPL) and the demerger of the automotive undertakings of the entity.

Further, the automotive ancillary industry player said that this move is part of the Anand Group's revenue target of Rs 50,000 crore by 2030.

Gabriel India will issue 1,158 shares for every 1,000 shares held by AIPL promoters. The deal is calculated at a multiple of eight times the FY2025 Enterprise Value to Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) to improve the company's scale without financial leverage or cash outlay.

This is possible basis the approvals from multiple stakeholders such as the company's board, creditors, stock exchanges, the National Company Law Tribunal (NCLT), and shareholders.

Gabriel has set April 1, 2025, as the appointed date for the merger of Anchemco into AIPL, while the appointed date for the demerger and subsequent merger has been set as April 1, 2026.

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The company has cited its transformation, expansion of domestic and global presence, simplification of the group structure and addressing investor queries over product diversification and M&A strategy as some of the key rationale behind this move. The investor presentation further adds that this move has increased the scale of the company without any leverage or cash outlay.

As of 2: 49 pm on Wednesday, the stock price of Gabriel India rose 20 per cent to Rs 1,011.45. The stock has already rallied 58.81 per cent in the last one week, as per BSE Sensex data.