Gabriel India to Acquire 28.99% in HL Mando for ₹2,231 Crore, Transforming into Diversified Auto Component Major

Gabriel India, a leading manufacturer of ride-control products like shock absorbers and suspension systems for vehicles, has announced a major strategic acquisition. On July 21, 2026, its board approved the purchase of a 28.99% stake in HL Mando Anand India Private Limited, a manufacturer of steering, braking, and suspension systems, for a total consideration of ₹2,231 crore. The deal, which will be paid for partly by issuing new shares to its promoter and partly in cash, positions Gabriel as the ANAND Group’s primary vehicle for consolidating its automotive components businesses, transforming it from a single-product company into a diversified mobility solutions provider.

The Deal Structure: Shares and Cash for a Strategic Stake

The acquisition involves Gabriel India buying 4.81 crore shares of HL Mando Anand India from its promoter, Asia Investments Private Limited (AIPL), at ₹463.50 per share . The total consideration of ₹2,231 crore will be discharged in two parts:

Share Swap: Gabriel will issue 1.44 crore new equity shares to AIPL on a preferential basis at ₹1,305.89 per share, aggregating to ₹1,881.03 crore .
Cash Payout: The remaining ₹350 crore will be paid in cash .

This transaction is a related-party deal, as AIPL is the promoter of both Gabriel India and the seller of the HL Mando stake . The company has stated that the transaction is at arm's length and based on independent valuation reports .

Following the preferential issue, AIPL’s direct shareholding in Gabriel India will increase from 42.67% to 46.98%, and the total promoter group holding will rise from 63.55% to approximately 66.28% . Consequently, the stake of public shareholders will be diluted from 36.45% to about 33.71% .

HL Mando: A High-Growth Addition to the Portfolio

HL Mando Anand India is a significant player in the Indian auto component space. For the financial year 2024-25, it reported a turnover of approximately ₹5,425 crore, a net worth of ₹1,739 crore, and a profit after tax of ₹388 crore . The company supplies major original equipment manufacturers (OEMs) in India and also exports components .

This acquisition adds a new dimension to Gabriel's product portfolio. While Gabriel's core strength lies in ride-control products, HL Mando brings in complementary capabilities in steering and braking systems. This move is a direct execution of the management's stated strategy to transform Gabriel "from a single product suspension manufacturing company into a diversified, technology driven mobility solutions provider" .

Gabriel's Q1 FY27 Performance: A Strong Foundation

The announcement was made alongside Gabriel India's financial results for the first quarter of FY27, which showed robust growth. The company's standalone and consolidated numbers have been restated to reflect the impact of a recently concluded composite scheme of arrangement that merged an automotive undertaking from its promoter into the company .

On a standalone basis, revenue from operations for Q1 FY27 stood at ₹1,274.25 crore, a 19% increase from ₹1,071.68 crore in the same quarter last year . Net profit after tax grew by 27% to ₹75.97 crore from ₹59.61 crore in Q1 FY26 .

The consolidated performance, which includes subsidiaries and joint ventures, was even stronger. Revenue from operations rose to ₹1,425.68 crore, and net profit attributable to shareholders jumped to ₹107.35 crore . A key driver of consolidated profit is the share of profit from associates, which contributed ₹42.74 crore in Q1 FY27, up from ₹38.72 crore in the previous year's quarter .

Building the ANAND Group's Auto Component Powerhouse

The HL Mando acquisition is the latest in a series of strategic moves by Gabriel India to consolidate the ANAND Group's automotive businesses. The company's management has consistently articulated this vision across investor presentations over the past year.

In the July 2025 investor presentation, management stated the goal was to make "Gabriel the main engine for growth of automotive businesses" and highlighted an expected "accretion in EPS by INR 7 per share (~ 41%) for FY25" from the restructuring . This was followed by a composite scheme of arrangement, approved by the NCLT in May 2026, which merged several other auto component businesses and investments into Gabriel .

The company has also been active on other inorganic fronts. It completed an asset purchase from Marelli Motherson Auto Suspension, adding capacity for 3.2 million shock absorbers and 1 million gas springs . It also formed joint ventures with Jinhap Korea for fasteners and with SK Enmove for lubricants and functional fluids, both effective from February 2026 .

The board also approved a separate investment to acquire a 50% minus one share stake in HL Klemove India Private Limited, an autonomous driving and automotive electronics solutions provider, for a sum equivalent to USD 98.44 million . This further diversifies Gabriel's portfolio into advanced technology products.

The combined scale of these entities is significant. Gabriel's FY26 consolidated revenue was ₹4,667 crore, and HL Mando's FY25 turnover was ₹5,425 crore, implying a combined scale of over ₹10,000 crore, placing it in the league of large, diversified auto component peers . The deal is subject to shareholder and other regulatory approvals, with the company indicating a timeline of up to one year from shareholder approval for completion .

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The Deal Structure: Shares and Cash for a Strategic Stake

HL Mando: A High-Growth Addition to the Portfolio

Gabriel's Q1 FY27 Performance: A Strong Foundation

Building the ANAND Group's Auto Component Powerhouse

Sources