Gravita India Limited has approved an additional investment of approximately ₹94.42 crore to subscribe to the rights issue of its material subsidiary, Rashtriya Metal Industries Limited (RMIL). This capital infusion aims to fund general corporate purposes for the copper and copper alloy manufacturer.

The decision follows a prior intimation dated September 30, 2026, and is executed under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The transaction involves cash consideration and is classified as a related party transaction since RMIL is a material subsidiary of Gravita India. The company stated that the deal is conducted at arm's length, with no other interest held by the promoter or promoter group in the target entity beyond this stake.

Subsidiary Financial Profile

Rashtriya Metal Industries Limited, incorporated in November 1946, is engaged in manufacturing copper and copper alloy products, including strips and coils. The company exports to markets such as the UAE, USA, Thailand, Sri Lanka, Oman, Saudi Arabia, Kenya, and Indonesia. As on March 31, 2026, RMIL reported a net worth of ₹330 crore and total assets of ₹579 crore. Its turnover for the year ended March 31, 2026, stood at ₹1,041 crore.

Shareholding Structure

The subscription to the rights issue will result in a marginal adjustment to Gravita India’s shareholding in RMIL. Prior to the rights issue, Gravita India held 99.5880% of the shares. Post-completion of the offer, this stake is expected to rise slightly to 99.5881%. The acquisition does not require any governmental or regulatory approvals and is expected to be completed within the timelines specified in the subsidiary's rights offer.

What the Numbers Show

The data reveals a significant expansion in RMIL’s operational scale over the last two fiscal years. Turnover grew from ₹688 crore in FY24 to ₹1,041 crore in FY26, indicating robust demand for its copper products. Despite this revenue growth, the subsidiary’s net worth of ₹330 crore remains substantially lower than its annual turnover, suggesting that the additional equity injection via the rights issue is critical for supporting working capital needs and sustaining operations amidst rising business volumes.

Gravita India has incorporated a new entity, Green Maputo Recyclers, in Mozambique, marking an expansion of its recycling operations into the African market.

New entity details

The newly formed company, Green Maputo Recyclers, is based in Mozambique and represents Gravita India's latest step in building its international recycling presence. The incorporation signals the company's intent to establish recycling capabilities in the southern African region.

Gravita India has been expanding its global footprint through subsidiary and associate entities across multiple geographies. The formation of Green Maputo Recyclers in Mozambique adds to this international network, with Mozambique representing a new market for the company's recycling business.