Warburg Pincus plans to pare 3.5% stake in Apollo Tyres

22 May 2024 , 08:05 AM

White Iris Investment, a Warburg Pincus unit, will sell a 3.5% share in Apollo Tyres on Wednesday in a block sale worth ₹1,040 Crore ($125 million), according to sources. The sale involves 2.24 Crore shares.

The block deal is expected to take place at ₹463 per equity share (3.97% lower than the closing price of ₹482.15 per share on May 21, 2024). The deal’s broker is IIFL Capital Services.

In December, White Iris Investment sold a 4.5% interest in Apollo Tyres for ₹1,281 Crore in various block sales.

Apollo Tyres’ shares rose 7% to ₹508 on the BSE last week, despite the company releasing subdued results in the March quarter of FY24.

The tyre company reported a 13.7% year-on-year (YoY) fall in net profit to ₹354 Crore for the fourth quarter ended March 31, 2024. In the same quarter, it had a net profit of ₹410.3 Crore.

Apollo Tyres Ltd., founded in 1972, is a midcap business (market capitalization of ₹30,621.39 Crore) that operates in the tyre industry. As of March 31, 2024, promoters owned 37.36% of the company, FIIs 18.16%, and DIIs 21.89%.

Warburg Pincus LLC works as a private equity business. The company invests in healthcare, consumer products, technology, media, and telecommunications, as well as financial services for the energy, industrial, and business services sectors. Warburg Pincus deals with consumers all throughout the world.

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