Gravita India Limited has approved a corporate guarantee of up to ₹100 crore for its material subsidiary, Rashtriya Metal Industries Limited (RMIL), to support ongoing and future credit facilities. The Finance Committee of the Board of Directors authorized the move during its meeting held on August 20, 2026.

The guarantee enables RMIL to avail credit facilities of up to ₹600 crore from banks, financial institutions, and other lenders. Gravita India disclosed that the arrangement creates a contingent liability for the parent company, with no immediate financial impact unless RMIL fails to meet its repayment obligations.

Transaction Details

The corporate guarantee is structured to support RMIL’s broader financing requirements. Key terms of the disclosure include:

Promoter Interest and Governance

The transaction involves related-party interests. Mr. Rajat Agrawal, the Promoter and Chairman cum Managing Director of Gravita India, holds an interest in the deal. Additionally, Ms. Karvi Agrawal, daughter of Mr. Rajat Agrawal, serves as the Managing Director of RMIL.

The Promoter and his immediate family members collectively hold six equity shares in RMIL, representing a negligible percentage of its share capital. Gravita India stated that this shareholding is nominal in nature and that the corporate guarantee was executed at arm's length.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with Para B of Part A of Schedule III. The company also referenced SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026, in its filing to the stock exchanges.

Gravita India Limited plans to add 59,200 MTPA of copper recycling capacity at its existing facility in Mundra, Gujarat. The expansion represents a fresh capacity addition for the metal recycling segment, aimed at strengthening the company's recycling capabilities to meet growing domestic and international demand for sustainable copper products. The company disclosed the move in a filing with stock exchanges on August 19, 2026, under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Project details

The investment required for this capacity addition is approximately ₹64 crore, to be financed entirely through internal accruals, indicating no immediate dilution or external debt requirement for this specific capex outlay. The proposed capacity addition is expected to be commissioned in phases by March 31, 2029.

Strategic rationale

According to the disclosure, this capacity addition aligns with Gravita India's long-term strategy to enhance its recycling infrastructure. The company highlighted the growing demand for sustainable copper products as a key driver for this expansion. As this is a fresh capacity addition for copper recycling, existing capacity and utilization metrics for this specific segment were not applicable.

Crucially, the new capacity will serve as a backward integration initiative for the company's proposed Mandvi plant in Gujarat. This move aims to strengthen raw material sourcing and processing capabilities, creating greater operational integration across the copper recycling value chain. The Mundra facility's strategic location near a major port provides logistical advantages for sourcing raw materials and serving both domestic and international markets.

The filing was signed by Nitin Gupta, Company Secretary, and submitted to both BSE Ltd. and the National Stock Exchange of India Ltd. on August 19, 2026.