Gravita India Signs Binding Term Sheet for Rs. 565 Crore RMIL Acquisition
Gravita India Limited has signed a binding term sheet for acquiring up to 100% equity stake in Rashtriya Metal Industries Limited for Rs. 565 crores, marking strategic expansion into copper manufacturing. RMIL, established in 1946, operates an integrated facility in Gujarat with 31,200 MTPA capacity and achieved Rs. 910 crores turnover with Rs. 60 crores EBITDA in FY25. The transaction is expected to complete by March 31, 2026, subject to due diligence and regulatory approvals.
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Gravita India Limited has announced the signing of a binding term sheet for the proposed acquisition of up to 100% equity stake in Rashtriya Metal Industries Limited (RMIL) for approximately Rs. 565 crores. The company made this disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, marking a significant strategic expansion into the copper manufacturing sector.
Transaction Structure and Timeline
The proposed acquisition involves purchasing shares from existing shareholders of RMIL through a Share Purchase Agreement (SPA). Upon completion, RMIL will become a subsidiary of Gravita India Limited, creating opportunities for expansion into the copper vertical and increasing the share of non-lead business in the company's portfolio.
| Transaction Details: | Information |
|---|---|
| Purchase Consideration: | Rs. 565 crores |
| Equity Stake: | Up to 100% |
| Expected Completion: | On or before March 31, 2026 |
| Transaction Type: | Share Purchase Agreement |
| Regulatory Framework: | SEBI Listing Regulations |
Target Company Profile and Operations
Rashtriya Metal Industries Limited stands as one of India's most reputed manufacturers of copper and copper alloy products, including strips and coils. The company operates an integrated manufacturing facility in Sarigram, Gujarat, spanning 58,287 square meters with a production capacity of 31,200 MTPA.
| Company Overview: | Details |
|---|---|
| Incorporation Date: | November 28, 1946 |
| CIN: | U99999MH1946PLC005378 |
| Manufacturing Location: | Sarigram, Gujarat |
| Land Area: | 58,287 square meters |
| Production Capacity: | 31,200 MTPA |
| Export Share: | Approximately 40% |
Financial Performance and Market Presence
RMIL has demonstrated strong financial performance with substantial international presence. The company exports to multiple countries including UAE, USA, Thailand, Sri Lanka, Kenya, Indonesia, Oman, and Saudi Arabia, representing approximately 40% of its business operations.
| Financial Metrics (FY 2024-25): | Amount |
|---|---|
| Turnover: | Rs. 910 crores |
| EBITDA: | Rs. 60 crores |
| Net Worth: | Rs. 300 crores |
| Total Assets: | Rs. 558 crores |
| Historical Turnover: | Amount (Rs. Crores) |
|---|---|
| FY 2024-25: | 910 |
| FY 2023-24: | 688 |
| FY 2022-23: | 598 |
Strategic Rationale and Business Synergies
The acquisition aligns with Gravita India's strategy to diversify its business portfolio and expand into new verticals. The transaction is expected to create strong operating synergies with existing plants across procurement, logistics, and sales operations. Additionally, it provides opportunities for backward integration and reduces dependence on lead-based business operations.
The transaction remains subject to completion of due diligence, execution of definitive documentation, receipt of necessary regulatory and other approvals, and satisfaction of customary closing conditions. The company expects the deal to strengthen its position in the metals recycling and manufacturing sector while enhancing its global market presence.
Historical Stock Returns for Gravita India
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.64% | +1.29% | +2.39% | -6.95% | -5.91% | +2,095.51% |
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