Shares of Gabriel India Ltd rose 20% in opening trade on Tuesday to hit a 52-week high after the auto component maker’s board approved a composite scheme of arrangement aimed at consolidating its business operations to drive future growth and enhance competitiveness.

The Gabriel stock opened 20% higher at ₹842.90 on the BSE today compared with its previous closing price of ₹702.45. The Anand Group company’s market cap increased to ₹12,107 crore.

The restructuring scheme involves Gabriel India, Asia Investments Private Ltd (AIPL), and Anchemco India Private Ltd. Under this arrangement, the automotive business undertaking of AIPL—comprising the business of Anchemco, which is engaged in the manufacturing of brake fluids, radiator coolants, diesel exhaust fluid, and PVC-based adhesives—as well as investments in Dana Anand India Private Ltd, Henkel ANAND India Pvt Ltd, and ANAND CY Myutec Automotive Pvt Ltd, will be vested into Gabriel.

Gabriel will issue 1,158 equity shares of ₹1 each for every 1,000 equity shares of ₹10 each held in AIPL to the shareholders of AIPL.

This consolidation will bring together AIPL’s demerged automotive components and product businesses—including drivetrain products (such as EV transmissions), Body-in-White and NVH solutions, brass and steel synchronizer rings, aluminum forgings, brake fluids, radiator coolants, DEF/AdBlue for two-, three- and four-wheelers as well as trucks, and PU/PVC-based adhesives—under Gabriel’s umbrella. This move, combined with Gabriel’s recent entry into the sunroof segment, marks its transformation from a mono-product suspension company into a diversified, technology-driven mobility solutions provider. It will reduce reliance on a single product line by expanding into new segments, geographies, the aftermarket, and the railway product segment.

The scheme is expected to position Gabriel as a global OEM partner, expand its customer base, integrate cutting-edge technologies, and strengthen its aftermarket presence with a broader product portfolio. The restructuring is projected to accelerate profitable growth with improved margins, contributing to higher shareholder value through EPS accretion and enhanced return on equity.

Commenting on the move, Anjali Singh, Chairperson of Gabriel India, said: “This Scheme of Arrangement is in line with our Group’s strategy to re-align the corporate structure, which will improve our competitive positioning, with Gabriel India playing a pivotal role. We envision Gabriel India as ANAND Group’s vehicle for future growth, providing a platform to unlock value for all shareholders. As a Group, we have set a revenue target of ₹50,000 crore by 2030, and we see Gabriel India leading the way.”

Atul Jaggi, Managing Director of Gabriel India, added: “Traditionally, Gabriel India was focused on suspension parts and shock absorbers. In 2023, we took the first step toward diversification by adding the sunroof business. With this restructuring, we will now operate across multiple product lines such as brake fluids, radiator coolants, DEF/AdBlue for 2W, 3W, 4W, and trucks, as well as PU/PVC-based adhesives.