Gravita India indicators binding time period sheet price ₹565 crore for acquisition of Rasthriya Metallic Industries – CNBC TV18 – Company Technique & Outlook

Recycling firm Gravita India Ltd on Monday (February 9) stated its board of administrators accredited the signing of a binding time period sheet to amass as much as 100% of the fairness share capital of Rashtriya Metallic Industries Ltd (RMIL) for a complete consideration of as much as ₹565 crore.

The acquisition is topic to completion of due diligence and different phrases and situations detailed within the time period sheet.

RMIL, included on November 28, 1946, is engaged within the manufacturing of copper and copper alloy merchandise, together with strips and coils, with exports to the UAE, USA, Thailand, Sri Lanka, Oman, Saudi Arabia, Kenya, and Indonesia.

The corporate had a web price of ₹300 crore, whole property of ₹558 crore, and turnover of ₹910 crore for the yr ended March 31, 2025. Its turnover for the final three years was ₹910 crore in FY24-25, ₹688 crore in FY23-24, and ₹598 crore in FY22-23.

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The acquisition isn’t a associated get together transaction, and no promoter, promoter group, or group firm has any curiosity in RMIL. The consideration will probably be in money, cheque or financial institution switch. Following the acquisition, RMIL will change into a subsidiary of Gravita India.

The transaction is a part of Gravita India’s strategic initiative to broaden its presence and capabilities. The indicative time interval for completion of the acquisition is March 31, 2026, or such different date as could also be mutually agreed between the events. Gravita India additionally introduced its entry into the enterprise of copper recycling, with additional updates to be shared in the end.

Third Quarter Outcomes

Gravita India’s web revenue rose 25.3% year-on-year, supported by sharp margin growth and sturdy development in working revenue. The corporate posted a consolidated web revenue of ₹97.7 crore for the quarter, in contrast with ₹78 crore within the year-ago interval. Income elevated 2.1% year-on-year to ₹1,017 crore from ₹996 crore.

Additionally Learn: Gravita India shares in focus after higher working efficiency in Q3, capex plans for FY28

EBITDA rose sharply by 49.3% to ₹120.2 crore from ₹80.5 crore a yr in the past, reflecting improved working efficiency. Working margins expanded considerably to 11.8% in the course of the quarter, in contrast with 8% within the corresponding interval final yr.

Shares of Gravita India Ltd ended at ₹1,673.95, up by ₹29.95, or 1.82%, on the BSE.