Warburg Pincus to Offload 3.5% of Apollo Tyres for ₹1,040 Cr

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Synopsis:

White Iris Investment, a subsidiary of Warburg Pincus, plans to sell a 3.5% stake in Apollo Tyres for ₹1,040 crore through a block deal on May 22. The deal involves the sale of 2.24 crore shares at ₹463/share with a 4% discount.

Apollo Tyres News Today

White Iris Investment, a subsidiary of Warburg Pincus, is set to divest a 3.5% stake in Apollo Tyres through a block deal on Wednesday, aiming to raise ₹1,040 crore. The deal involves the sale of 2.24 crore shares at a price likely to be around ₹463.00 per share, representing a 4% discount to the closing price on May 21, 2024.

Additional Read: Signatureglobal India Ltd Share Price

Company Overview and Shareholding

Apollo Tyres, a midcap company with a market cap of ₹30,621.39 crore, operates in the tyre sector. As of March 31, 2024, promoters hold a 37.36% stake, while FIIs and DIIs hold 18.16% and 21.89%, respectively.

Block Deal Dynamics and Broker

The block deal is expected to be brokered by IIFL Securities and is anticipated to occur at a floor price between ₹460-465 per share, with good demand from domestic funds. This divestment follows a previous sale in December, where White Iris Investment sold a 4.5% stake for ₹1,281 crore.

Future Outlook and Performance

Apollo Tyres reported a consolidated net profit decline of 14% for the March 2024 quarter, attributed to higher expenses. However, the company remains optimistic about future demand across its key geographies and product segments.

Despite a recent jump in Apollo Tyres' stock price, the company reported a 13.7% decline in net profit for the March quarter of FY24. The Board of Apollo Tyres has recommended a dividend of ₹6 per equity share for FY24.

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This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

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