Shares of Gravita India Ltd surged 4% to touch a day’s high of Rs 1,763.80 on 10th February after the company announced on Monday (9th February) that its board of directors has approved the signing of a binding term sheet to acquire up to 100% of the equity share capital of Rashtriya Metal Industries Ltd (RMIL) for a total consideration of up to Rs 565 crore.

The acquisition is subject to due diligence and other terms outlined in the binding term sheet. Once completed, RMIL will become a subsidiary of Gravita India. The deal is not a related party transaction, and no promoter or group company has any interest in RMIL. 

The consideration will be paid through cash, cheque, or bank transfer. The transaction is expected to be completed by 31st March, 2026, or any other mutually agreed date.

Incorporated on 28th November, 1946, Rashtriya Metal Industries Ltd (RMIL) manufactures copper and copper alloy products, including strips and coils. The company exports to markets such as the UAE, USA, Thailand, Sri Lanka, Oman, Saudi Arabia, Kenya, and Indonesia.

For the year ended 31st March, 2025, RMIL reported a net worth of Rs 300 crore, total assets of Rs 558 crore, and turnover of Rs 910 crore. Its turnover stood at Rs 910 crore in FY24-25, Rs 688 crore in FY23-24, and Rs 598 crore in FY22-23.

The acquisition aligns with Gravita India’s strategy to expand its capabilities and marks its entry into the copper recycling business. Further updates are expected in due course.

Gravita India Third Quarter Results

Gravita India reported a 25.3% YoY rise in consolidated net profit to Rs 97.7 crore, compared to Rs 78 crore a year ago. Revenue increased 2.1% to Rs 1,017 crore from Rs 996 crore.

EBITDA jumped 49.3% to Rs 120.2 crore from Rs 80.5 crore, supported by margin expansion. Operating margins improved to 11.8% from 8% in the corresponding quarter last year.

At 12:25 PM, shares of Gravita India were trading 1.40% higher at Rs 1,697.70 on the NSE.

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