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

What Gabriel India announced

On 21 July 2026, Gabriel India Limited (BSE: 505714, NSE: GABRIEL) disclosed that its board approved the acquisition of a substantial equity stake in HL Klemove India Private Limited (the “Target”). The company will purchase 37,844,999 equity shares from HL Klemove Corporation of South Korea for an amount equal to the INR equivalent of USD 98.44 million. The transaction will give Gabriel India 30 % minus one share of the Target’s paid‑up share capital, thereby classifying the Target as an associate of Gabriel India.

Transaction structure and agreements

The acquisition will be executed under a Share Purchase Agreement (SPA) between Gabriel India and HL Klemove. Simultaneously, the parties will enter into a Joint Venture Agreement (JVA) that defines the post‑transaction shareholding pattern: HL Klemove will hold 70 % plus one share, while Gabriel India will hold 30 % minus one share. In addition, a Corporate Service Agreement (CSA) will be signed 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, ensuring continuity of technology transfer and brand usage.

Target company profile

Why this matters for investors

The acquisition converts the Target into an associate of Gabriel India, meaning the company will now account for its share of the Target’s profits and losses under the equity method. The USD 98.44 million outlay represents a material cash commitment relative to Gabriel India’s balance‑sheet, but the filing does not disclose the financing method. The joint‑venture structure gives Gabriel India a significant minority stake while retaining operational influence through the CSA with its promoter entity, Anand Automotive.

From a strategic perspective, the Target operates in high‑growth segments—autonomous‑driving hardware and automotive electronics—where India’s automotive market is expanding rapidly. The turnover increase from FY 2024‑25 to FY 2025‑26 (approximately 31 %) signals strong market traction, which could enhance Gabriel India’s exposure to these emerging technologies.

Regulatory compliance is satisfied through the filing under Regulation 30 (LODR), and the board has disclosed all required annexures per SEBI Schedule III. No further shareholder approval appears to be required, but the transaction will be reflected in future quarterly and annual reports.

Conclusion

Gabriel India’s board has approved a USD 98.44 million investment to acquire a 30 %‑minus‑1‑share stake in HL Klemove India, creating a joint‑venture where HL Klemove holds the majority. The deal brings Gabriel India into the fast‑growing autonomous‑driving and automotive‑electronics space, with the Target already showing robust turnover growth. The transaction is now subject to standard post‑closing formalities, and its financial impact will be disclosed in upcoming regulatory filings.