Graphite India Acquires 6.82% Stake in GrafTech International for ₹168 Crore

Kolkata, September 19, 2025 – Graphite India Limited (NSE: GRAPHITE, BSE: 509488) has announced a sizeable investment overseas through the acquisition of a 6.82% stake in GrafTech International Ltd, a New York Stock Exchange-listed company. The investment was completed via secondary market transactions as part of the Indian Overseas Portfolio Investment (OPI), permitted under the Foreign Exchange Management (Overseas Investment) Rules, 2022, with a total consideration of ₹168.13 crore.

About GrafTech International

GrafTech International is a prominent global producer of graphite electrodes. Graphite electrodes are an important input for electric arc furnace steelmaking and the production of ferrous and non-ferrous metals. GrafTech is recognized for its ability to manufacture and supply the lowest-cost, ultra-high power electrodes in the world, with some of the largest capacities of any global producer. GrafTech’s significant backward integration into petroleum needle coke, a key raw material to manufacture the electrodes, provides it with a steady supply of that material at a low cost.

Financial Performance and Challenges

Although GrafTech remains in a strong industry position, it has experienced revenue declines in recent years. The company recorded revenues of USD 538.78 million in 2024, down from USD 620.50 million in 2023, and significantly below USD 1.28 billion in 2022. These trends indicate that GrafTech still maintains solid production capability, but is managing market and demand pressures.

Market Response and Strategic Outlook

After the announcement, shares of Graphite India reacted positively, closing at ₹573 on September 19, 2025, up ₹7.55 (1.34%) from the previous close. The company, with a market cap of ₹11,228 crore, has demonstrated consistent growth over time horizons, underpinned by strong investor confidence. This acquisition is expected to extend Graphite India’s international presence, while continuing to reinforce its status as an important supplier to the global steel and metallurgical industries.

REF: https://nsearchives.nseindia.com/corporate/GILKOLKATA_19092025125209_20250919SEINTIMATIONGRAFTECH.pdf

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