This small-cap stock announces an exclusive agreement to form a new subsidiary!

The scrip witnessed massive spurt in volume by more than 1.1 times

On Wednesday, shares of Gabriel India zoomed more than 5 per cent to trade on intraday high of Rs 174.50 apiece on BSE. The scrip witnessed massive spurt in volume by more than 1.1 times.   

The company announced that it has signed a Technical Collaboration and Alliance agreement with Inalfa Roof Systems, a Dutch-based company with a net worth of $1.5 billion. As part of the agreement, the two companies have formed a new entity named Inalfa Gabriel Sunroof Systems Pvt. Ltd. (IGSS), which will operate as a wholly owned subsidiary of Gabriel India Limited.   

The primary objective of this alliance is to manufacture high-quality sunroofs for the Indian automotive market. The manufacturing unit will be located near Chennai and is expected to commence its operations in the first quarter of the calendar year 2024. The total investment for this project is estimated to be $22 million.  

Under the terms of the agreement, Gabriel India Limited will enter a new and rapidly growing segment of the automobile industry by manufacturing sunroofs for PVs. This collaboration will enable Gabriel India Limited to expand its product portfolio and enter into new partnerships with SUV and younger car buyers, in addition to strengthening its position in the Indian automotive market. With this strategic alliance, Gabriel India Limited is poised to leverage the expertise and technical know-how of Inalfa Roof Systems to manufacture high-quality sunroofs that meet the ever-increasing demands of the Indian automotive market.  

The stock has witnessed heavy buying as it has surged more than 56 per cent in just 1 year. Keep a close eye on this trending stock.