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What is the story about?
Recycling company Gravita India Ltd on Monday (February 9) said its board of directors 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 ₹565 crore.
The acquisition is subject to completion of due diligence and other terms and conditions detailed in the term sheet.
RMIL, incorporated on November 28, 1946, is engaged in the manufacturing of copper and copper alloy products, including strips and coils, with exports to the UAE, USA, Thailand, Sri Lanka, Oman, Saudi Arabia, Kenya, and Indonesia.
The company had a net worth of ₹300 crore, total assets of ₹558 crore, and turnover of ₹910 crore for the year ended March 31, 2025. Its turnover for the last three years was ₹910 crore in FY24-25, ₹688 crore in FY23-24, and ₹598 crore in FY22-23.
Also Read: Gravita India enters lithium-ion battery recycling with 6,000 MTPA Mundra plant in Gujarat
The acquisition is not a related party transaction, and no promoter, promoter group, or group company has any interest in RMIL. The consideration will be in cash, cheque or bank transfer. Following the acquisition, RMIL will become a subsidiary of Gravita India.
The transaction is part of Gravita India’s strategic initiative to expand its presence and capabilities. The indicative time period for completion of the acquisition is March 31, 2026, or such other date as may be mutually agreed between the parties. Gravita India also announced its entry into the business of copper recycling, with further updates to be shared in due course.
Third Quarter Results
Gravita India's net profit rose 25.3% year-on-year, supported by sharp margin expansion and robust growth in operating profit. The company posted a consolidated net profit of ₹97.7 crore for the quarter, compared with ₹78 crore in the year-ago period. Revenue increased 2.1% year-on-year to ₹1,017 crore from ₹996 crore.
Also Read: Gravita India shares in focus after better operating performance in Q3, capex plans for FY28
EBITDA rose sharply by 49.3% to ₹120.2 crore from ₹80.5 crore a year ago, reflecting improved operating performance. Operating margins expanded significantly to 11.8% during the quarter, compared with 8% in the corresponding period last year.
Shares of Gravita India Ltd ended at ₹1,673.95, up by ₹29.95, or 1.82%, on the BSE.
The acquisition is subject to completion of due diligence and other terms and conditions detailed in the term sheet.
RMIL, incorporated on November 28, 1946, is engaged in the manufacturing of copper and copper alloy products, including strips and coils, with exports to the UAE, USA, Thailand, Sri Lanka, Oman, Saudi Arabia, Kenya, and Indonesia.
The company had a net worth of ₹300 crore, total assets of ₹558 crore, and turnover of ₹910 crore for the year ended March 31, 2025. Its turnover for the last three years was ₹910 crore in FY24-25, ₹688 crore in FY23-24, and ₹598 crore in FY22-23.
Also Read: Gravita India enters lithium-ion battery recycling with 6,000 MTPA Mundra plant in Gujarat
The acquisition is not a related party transaction, and no promoter, promoter group, or group company has any interest in RMIL. The consideration will be in cash, cheque or bank transfer. Following the acquisition, RMIL will become a subsidiary of Gravita India.
The transaction is part of Gravita India’s strategic initiative to expand its presence and capabilities. The indicative time period for completion of the acquisition is March 31, 2026, or such other date as may be mutually agreed between the parties. Gravita India also announced its entry into the business of copper recycling, with further updates to be shared in due course.
Third Quarter Results
Gravita India's net profit rose 25.3% year-on-year, supported by sharp margin expansion and robust growth in operating profit. The company posted a consolidated net profit of ₹97.7 crore for the quarter, compared with ₹78 crore in the year-ago period. Revenue increased 2.1% year-on-year to ₹1,017 crore from ₹996 crore.
Also Read: Gravita India shares in focus after better operating performance in Q3, capex plans for FY28
EBITDA rose sharply by 49.3% to ₹120.2 crore from ₹80.5 crore a year ago, reflecting improved operating performance. Operating margins expanded significantly to 11.8% during the quarter, compared with 8% in the corresponding period last year.
Shares of Gravita India Ltd ended at ₹1,673.95, up by ₹29.95, or 1.82%, on the BSE.
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