Gabriel India Limited has approved the allotment of ₹1,000 crore in senior, unsecured, non-convertible debentures (NCDs) through a private placement. The Finance Committee sanctioned the issuance on September 10, 2026, marking a significant capital raising move for the engineering and infrastructure firm.

The company will issue 1,00,000 debentures, each with a face value of ₹1,00,000. The instruments are rated and redeemable, designed to raise an aggregate principal amount of up to ₹1,000 crore. This issuance follows an earlier disclosure dated August 24, 2026, indicating a structured approach to debt financing.

Instrument Terms

The NCDs carry a coupon rate of 8.15% per annum, payable annually. The tenure of the instrument is set at 36 months from the deemed date of allotment, which is September 10, 2026. Consequently, the maturity date for the principal repayment is September 10, 2029.

The debentures are unsecured, meaning they do not create any charge over the company’s assets. There are no special rights or privileges attached to these instruments beyond those ordinarily applicable to similar listed NCDs.

Default Provisions

The issuance documents outline specific penalties for default. If Gabriel India fails to pay interest or principal on the due date, interest will accrue on the unpaid sum at a rate of 2% per annum over and above the coupon rate. This penalty applies until the actual payment date or until any event of default is cured to the satisfaction of the Debenture Trustee.

Regulatory Compliance

The allotment was approved pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Finance Committee meeting concluded at 4:10 pm IST on September 10, 2026. The debentures will be listed on the Wholesale Debt Market segment of BSE Limited within statutory timelines.

Gabriel India Limited clarified on September 1, 2026, that the valuation for its proposed acquisition of a 28.99% stake in HL Mando Anand India Private Limited (HMAI) relies on audited financial statements for the fiscal year ended March 31, 2026.

The disclosure, made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, confirms that there is no change in the equity share exchange ratio or the terms of the proposed acquisition and preferential issue.

Transaction Structure

The company plans to acquire 4,81,34,427 equity shares of HMAI from Asia Investments Private Limited (AIPL), the promoter of Gabriel India. The consideration will be discharged through two components:

• Allotment of 1,44,04,204 equity shares of Gabriel India on a preferential basis
• Payment of the balance consideration in cash

Valuation Basis

The valuation underpinning the transaction is based on the audited financial statements for FY26. This includes the business of erstwhile Anchemco India Private Limited, which forms part of the Automotive Undertaking of AIPL.

A joint valuation report dated July 21, 2026, was issued by KPMG Valuation Services LLP and BDO Valuation Advisory LLP. The clarification states that the terms approved by the Board of Directors and Members remain unchanged.