Gravita India Limited has approved an additional investment of approximately ₹94.42 crore in its material subsidiary, Rashtriya Metal Industries Limited (RMIL). This investment will be made through subscription to RMIL’s rights issue. The move is intended to fund RMIL’s general corporate purposes and strengthen its financial position. This strategic infusion of capital highlights Gravita’s commitment to supporting its subsidiaries’ growth and operational needs.
Gravita India Approves Significant Subsidiary Investment
Gravita India Limited announced today its approval for a substantial investment in its material subsidiary, Rashtriya Metal Industries Limited (RMIL). The company plans to invest approximately ₹94.42 crore, or a higher amount if needed, through subscription to RMIL’s ongoing rights issue. This financial commitment underscores Gravita’s strategic intent to bolster the operations and financial health of its key subsidiary.
Rationale and Funding
The investment is earmarked for funding RMIL’s general corporate purposes. Rashtriya Metal Industries Limited is primarily engaged in the manufacturing of copper and copper alloy products, with significant exports to various international markets. The decision to invest comes after the Board of Directors of RMIL approved the rights issue, a move now sanctioned by Gravita India.
Details of the Acquisition
Rashtriya Metal Industries Limited, established on November 28, 1946, has a net worth of ₹330 crore, total assets of ₹579 crore, and a turnover of ₹1041 crore for the year ended March 31, 2026. The company’s business involves the manufacturing of copper and copper alloy products, serving markets including the UAE, USA, Thailand, and others. This transaction is considered to be at ‘arm’s length’. The consideration for the investment is cash, amounting to approximately ₹94.42 Crores.
Shareholding Impact
Following this rights issue subscription, Gravita India’s shareholding in RMIL is expected to remain exceptionally high. Prior to the rights issue offer, Gravita held 99.5880% of RMIL, and post-issue, this is anticipated to be 99.5881%. This slight increase demonstrates Gravita’s continued dominance and controlling stake in its material subsidiary.
Source: BSE
