Shares of Gabriel India Ltd fell as much as 8% on Wednesday, 22 July, dropping to a day’s low of Rs 1,362.40 on the NSE.

The decline came after the auto parts maker announced a large related-party acquisition alongside its June quarter results.

Gabriel India will buy a 28.99% stake in HL Mando Anand India from its own promoter entity, Asia Investments Pvt Ltd, for Rs 2,231 crore.

Since the seller is the company’s promoter, this counts as a related-party transaction. The company said the deal will be done at arm’s length, based on an independent valuation.

HL Mando Anand makes steering, braking and suspension systems for cars. It is a sizeable business in its own right, with a turnover of close to Rs 5,886 crore and a profit of Rs 358 crore in FY26.

The payment will be split two ways. Gabriel will pay Rs 350 crore in cash and settle the rest, Rs 1,881 crore, by issuing new shares to Asia Investments at Rs 1,305.89 apiece.

Once this is done, Asia Investments’ stake in Gabriel India will rise to 46.98% from 42.67%.

There is a second deal too. Gabriel is also picking up a 30% stake (minus one share) in HL Klemove India, a joint venture with a South Korean partner, for around Rs 948.2 crore.

This one marks the company’s entry into self-driving car technology, covering radar, cameras and other electronic systems used in advanced driver assistance.

On the earnings side, Gabriel’s consolidated net profit rose 2% year on year to Rs 107.4 crore, while revenue climbed 15.5% to Rs 1,425.7 crore.

EBITDA grew 5% to Rs 124 crore, but the margin slipped to 8.7% from 9.6%, as rising input costs squeezed profitability even as sales grew.

Management said debt will rise sharply once these deals close, with the debt to equity ratio expected to move toward 1:1 from under 0.2 currently.

At 13:38 pm, shares of Gabriel India were trading at Rs 1,395.90, down 6.22% for the day. Despite today’s fall, the stock remains up over 34% so far this year.

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