Warburg Pincus arm to sell 3.5% stake in Apollo Tyres
Mint. The deal involves up to 22.47 million shares, with an estimated value of ₹1,040.6 crore (approximately $125 million). The shares will be offered at a price range of ₹463 apiece, representing a 3.97% discount to the closing price on 21 May.
This news comes on the heels of a surge in Apollo Tyres' share price. The stock climbed around 5.7% intraday on Wednesday, reaching its highest level since 3 May, after a significant volume of shares (around 22.5 million) changed hands on the BSE, according to Bloomberg. A spokesperson of IIFL Securities Ltd, which is managing the sale process, did not respond to emails seeking comments.
This is not White Iris Investment's first sale of Apollo Tyres shares. In December 2023, the investment firm had offloaded 4.5% stake for ₹1,281 crore through multiple block deals. The news of the stake sale comes amid a 13.7% year-on-year decline in the net profit of Apollo Tyres to ₹354.1 crore for the quarter ended March.
The company saw a marginal 0.17% increase in revenue from operations at ₹6,258 crore during the same period. The company's gross debt during the period came down, strengthening its balance sheet from ₹ 56 billion in March 2023 to ₹ 39 billion in March 2024. Milestone Alert!
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