Gravita enters into MOU to acquire a Rubber Recycling plant in Europe

Gravita India Limited ("Gravita" or the "Company) a leading "Recycling Company" having its presence around the globe with 12 eco-conscious state-of-theart manufacturing facilities in Asia & Africa with a capacity of more than 3,00,000 MTPA in Multiple scrap recycling verticals, is delighted to announce that step down subsidiary of company Gravita Netherlands BV (herein after "GNBV") has executed a Memorandum of Understanding (MOU) to acquire a Waste Tyre Recycling plant in Romania from an existing entity based out in Romania having a capacity of approx. 17,000 MTPA . This will be Gravita's 1st recycling facility in Europe.

This acquisition will be done by forming a separate SPV in Romania in which GNBV will be holding 80% of equity with management control in the said SPV and remaining equity will be held by other partners based in Romania.

Further, total investment in this transaction will be approx. Rs. 40 Cr. and GNBV will be investing approx. Rs. 32 Cr. towards its contribution subject to in depth Financial, Environmental and Legal Due Diligence.

GNBV also aims to expand its recycling business operations across the European market, leveraging new market opportunities and establishing strategic partnerships to drive growth. This acquisition will enhance our presence, increase our customer base, and strengthen our competitive edge in the European market.

The company is already having similar rubber recycling facilities Senegal, Togo, Ghana and Tanzania. This is in alignment with the company's vision of Diversification and expansion plan of replicating our recycling business in different geographies.

Shares of Gravita India Limited was last trading in BSE at Rs. 2223.25 as compared to the previous close of Rs. 2290.50. The total number of shares traded during the day was 22475 in over 2351 trades.

The stock hit an intraday high of Rs. 2348.00 and intraday low of 2210.00. The net turnover during the day was Rs. 51036981.00.

Source : Equity Bulls

Keywords

GravitaIndia INE024L01027 GravitaNetherlandsBV MOU Acquisition WasteTyreRecyclingPlant Romania