Gravita India to buy 99% stake in Rashtriya Metal Industries for ₹559 crore; stock in focus

Shares of Gravita India Ltd. will be in focus on Friday, March 13, after the Jaipur-based recycling company signed definitive agreements to acquire a 98.95% stake in Rashtriya Metal Industries for a total consideration of ₹559.08 crore.

The transaction is expected to be completed on or before March 31, 2026, the company said in a regulatory filing.

Nearly 40% of RMIL's revenue comes from exports to key international markets, including the UAE, the US, Thailand, Sri Lanka, Kenya, Indonesia, Oman and Saudi Arabia.

The company operates an integrated manufacturing facility in Sarigam, Gujarat, spread across 15 acres, with an installed production capacity of 31,200 MTPA.

RMIL is a well-established manufacturer of copper and copper alloy products, including strips and coils, with a strong export presence.

The company has built a meaningful presence in electrical and automotive applications, giving Gravita access to high-entry-barrier and policy-supported segments aligned with India's Make in India initiative.

The proposed acquisition will allow Gravita to expand strategically into copper and copper alloy products, including recycling of copper scrap into copper alloys. This will complement its existing operations in lead, plastic, rubber and aluminium recycling.

The move is also expected to strengthen Gravita's position as an integrated recycling and value-added product manufacturer, while improving its competitive positioning and margin profile.

Global M&A advisory firm Singhi Advisors acted as the exclusive strategic and financial advisor for the transaction, while Crawford Bayley & Co. served as the legal advisor to Gravita.

The acquisition comes at a time when global demand for copper continues to rise. Over the past five decades, worldwide refined copper consumption has more than tripled, driven by growth in sectors such as electrical and electronic products, construction, industrial machinery, transportation equipment and consumer goods.

Shares of Gravita India settled 0.35% lower on Thursday at ₹1,500. The stock has declined more than 19% so far this year.