Gravita India Pumps Rs 94.42 Crore into Subsidiary RMIL

Investment Value: Rs 94.42 crore
Stake Change: From 99.5880% to 99.5881%

Reader Takeaway: The capital injection strengthens the subsidiary's balance sheet without altering the parent firm's controlling stake significantly.

What just happened

Gravita India Ltd has formally approved an additional investment of Rs 94.42 crore to subscribe to the rights issue of its material subsidiary, Rashtriya Metal Industries Limited (RMIL). The company stated this is an arm's length transaction intended to support RMIL's general corporate requirements. The subscription will move Gravita India’s equity stake from 99.5880% to 99.5881%.

Why this matters

This investment acts as a capital infusion to bolster RMIL, which has shown steady growth in its turnover. By using internal resources for this rights issue, Gravita is positioning its subsidiary to sustain operations and expansion in the copper and copper alloy manufacturing segment. Since no external regulatory approvals are required, the process is expected to conclude within the stipulated timeframe.

Financial Snapshot

As of March 31, 2026, RMIL reported a net worth of Rs 330 crore and total assets of Rs 579 crore. The subsidiary’s turnover has shown a positive upward trend over the last three fiscal years, growing from Rs 688 crore in FY 23-24 to Rs 1,041 crore in FY 25-26.

Context

RMIL is an established entity incorporated in 1946, specializing in copper strips and coils. It maintains an export footprint across several international markets, including the UAE, USA, Saudi Arabia, and Thailand.