Gabriel India to acquire 30% stake in HL Klemove India for USD 98.44 mn

What Gabriel India announced

On 21 July 2026, Gabriel India Limited (NSE: GABRIEL) informed the stock exchanges that its board had approved a share purchase and joint‑venture arrangement with HL Klemove Corporation of South Korea. The company will acquire 37,844,999 equity shares of HL Klemove India Private Limited (the “Target”) for an amount equal to the INR equivalent of USD 98.44 million. Post‑transaction, Gabriel India will hold 30 % minus one share of the Target’s paid‑up capital, thereby classifying the Target as an associate company.

"The investment will result in Gabriel India holding 30 % minus one share of the total paid‑up share capital of the Target Company, thereby making the Target Company an associate company of the Company." – Board resolution, 21 July 2026

Share purchase details

• Number of shares: 37,844,999 equity shares of HL Klemove India.
• Purchase price: INR equivalent of USD 98.44 million (exact INR amount not disclosed in the filing).
• Resulting holding: 30 % minus one share of the Target’s paid‑up share capital.
• Funding: The filing does not specify the source of funds; it only states the amount to be paid.
• Regulatory basis: Disclosure made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Joint venture structure and related agreements

The board also approved three agreements that will govern the relationship between the parties:

1. Joint Venture Agreement (JVA): Establishes the Target as a joint‑venture company between HL Klemove and Gabriel India. Shareholding will be 70 % plus one share to HL Klemove and 30 % minus one share to Gabriel India.
2. Share Purchase Agreement (SPA): Formalises the purchase of the 37.84 million shares from HL Klemove.
3. Corporate Service Agreement (CSA): Between Anand Automotive Private Limited (a promoter‑group entity of Gabriel India) and the Target, under which Anand Automotive will provide corporate, management and operational support services.

The existing License and Technical Assistance Agreement and Brand Sub‑License Agreement between HL Klemove and the Target will continue unchanged.

Target company profile

HL Klemove India Private Limited is a private limited company incorporated in Tamil Nadu. Key financial and operational data disclosed in the filing are:

• Authorized share capital: INR 129 crore (12.90 million shares of ₹10 each).
• Paid‑up share capital: INR 126.15 crore (12.61 million shares of ₹10 each).
• Turnover:
  • FY 2024‑25: INR 7,998.37 million (≈ ₹799.8 crore).
  • FY 2025‑26: INR 10,488.30 million (≈ ₹1,048.8 crore), indicating a significant growth trajectory.
• Products and services: The Target develops autonomous‑driving solutions (radar, front‑camera, LiDAR, AD/ADAS software, etc.) and automotive‑electronics solutions (brake ECU, steering ECU, SCR ECU, fuel pump controller, torque sensors, among others). The business operates across India.

Key facts at a glance

Why this matters for investors

The acquisition converts HL Klemove India into an associate of Gabriel India, giving the latter exposure to the fast‑growing autonomous‑driving and automotive‑electronics market in India. The investment of roughly USD 98 million represents a material outlay relative to Gabriel India’s balance sheet, although the filing does not disclose the exact funding route. By holding a 30 %‑minus‑one‑share stake, Gabriel India will be able to recognise its share of the Target’s profits under the associate accounting method, potentially enhancing earnings visibility if the Target’s turnover growth continues. The joint‑venture structure also secures a controlling interest for HL Klemove, preserving the Korean partner’s strategic direction while allowing Gabriel India to benefit from technology transfer and market access.

Conclusion

Gabriel India’s board has approved a USD 98.44 million investment to acquire a 30 %‑minus‑one‑share stake in HL Klemove India, creating a joint venture with HL Klemove Corporation. The transaction, disclosed under SEBI Regulation 30, makes the Target an associate and positions Gabriel India in the autonomous‑driving and automotive‑electronics space. The deal is subject to standard post‑approval formalities, but no further regulatory approvals are mentioned in the filing.