Gabriel India Ltd, the flagship company of the Anand Group, is on a roll. The stock surged a whopping 20% on Wednesday, hitting a 52-week high of Rs 1,011.45 on the BSE Sensex. And that’s not all. Over the past week, the stock has delivered an incredible 58% return to investors. But what’s fueling this explosive rally?
The big trigger? A major corporate restructuring move. Gabriel India recently announced a scheme for the amalgamation of Anchemco India Pvt. Ltd. into Asia Investments Pvt. Ltd. (AIPL), along with the demerger of its automotive undertakings. This strategic shift is part of the Anand Group’s ambitious plan to achieve Rs 50,000 crore in revenue by 2030.
Here’s how the deal works. Gabriel India will issue 1,158 shares for every 1,000 shares held by AIPL promoters. The valuation multiples are impressive too, calculated at eight times the FY2025 Enterprise Value to EBITDA. The best part? The company is scaling up without taking on additional financial leverage or cash outlay.
Of course, this move isn’t happening overnight. The company needs approvals from multiple stakeholders, including its board, creditors, stock exchanges, the National Company Law Tribunal (NCLT), and shareholders. The timeline is also clear. The merger of Anchemco into AIPL is set for April 1, 2025, while the demerger and subsequent merger will happen by April 1, 2026.
The rationale behind this move is solid. Gabriel India aims to transform its business, expand its domestic and global footprint, simplify its group structure, and address investor concerns about product diversification and M&A strategy. As per the investor presentation, this restructuring enhances the company’s scale without burdening it with debt or cash expenses.
Investors are clearly loving the plan. At 2:49 pm on Wednesday, Gabriel India’s stock was up 20% at Rs 1,011.45. With a 58.81% surge in just one week, the stock is turning heads on Dalal Street. Whether this momentum continues remains to be seen, but for now, Gabriel India is the talk of the town.