Gabriel India acquires 30% stake in Indian automotive tech firm for joint venture
Gabriel India Limited has announced an investment intended to acquire a significant equity stake in HL Klemove India Private Limited, forming a strategic joint venture to advance autonomous driving and automotive electronics manufacturing in the region. The deal involves Gabriel India and HL Klemove Corporation of Korea partnering with the Target Company.The acquisition entails Gabriel India purchasing 3,78,44,999 equity shares from HL Klemove for an aggregate consideration equivalent to USD 98.44 million. This investment will position the Target Company as an associate company of Gabriel India. Upon completion of the share purchase, the parties are set to execute a Joint Venture Agreement (JVA).
The JVA is designed to govern the inter se rights and obligations between HL Klemove, Gabriel India, and the Target Company. Under this partnership structure, HL Klemove will hold 70% plus one share of the target company's capital, while Gabriel India will secure a 30% minus one shareholding.
Beyond the acquisition and joint venture formation, a Corporate Service Agreement (CSA) is also planned between Anand Automotive Private Limited, a Promoter Group Entity of Gabriel India, and the Target Company. This CSA will provide essential corporate, management, and operational support services to the company for its business activities.
The Target Company focuses on producing and developing products across two main segments: Autonomous Driving Solutions Products and Automotive Electronics Solutions Products. These solutions include Radar, Lidar, ADCU/APCU (Automated Driving Control Unit/Automated Parking Control Unit), and advanced Electronic Control Units (ECUs) for vehicle management.
Key details of the investment and the Target Company are summarized below:
| Metric | Details |
|---|---|
| Target Entity | HL Klemove India Private Limited |
| Investment Stake Acquired | 3,78,44,999 equity shares (representing 30% minus one share) |
| Total Acquisition Cost | INR equivalent of USD 98.44 million |
| Payment Structure | 75% upfront payment and 25% deferred payment |
| Target Company Business | Developing, producing, manufacturing Autonomous Driving Solutions and Automotive Electronics Solutions Products |
| FY 2024-25 Turnover of Target Co | INR 7,998.30 Million |
The long stop date for the first tranche of payments is set on or before September 15, 2026. The deal structure ensures that the existing License and Technical Assistance Agreement and Brand Sub License Agreement between HL Klemove and the Target Company will remain in effect during this transition.
GABRIEL Stock Price Movement
Today, shares of Gabriel India Limited rallied, closing at ₹1488.5 after surging 8.02% in post-market trading. The performance drove the stock to its 52-week high, with approximately 2.66 million shares traded during the session.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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