Veteran private equity firm Warburg Pincus sold its entire 3.54 per cent stake in tire maker Apollo Tires for Rs 1,073 crore through an open market transaction. US-based Warburg Pincus, through its unit White Iris Investments, sold shares of Gurugram-based Apollo Tires through 14 bulk deals on the BSE.
Total 2,24,74,903 shares sold
According to BSE data, White Iris Investment Ltd sold a total of 2,24,74,903 shares of Apollo Tyres. The shares were sold at an average price of Rs 477.35 per share. This took the transaction value to Rs 1,072.84 crore. The important thing is that this sale has taken place at a discount. Currently the share price is at the level of Rs 490. Buyers of the shares included several domestic mutual funds (MFs), an insurance company and foreign investors.
According to shareholding data as of March 2024, White Iris Investment Ltd. Ltd. held 3.54 percent stake in Apollo Tyres. Let us tell you that in December last year, Warburg Pincus had sold 4.5 percent stake in Apollo Tires for Rs 1,281 crore through several wholesale deals.
How were the March quarter results?
The net profit of Apollo Tires has declined by 14 percent to Rs 354 crore in the March quarter of the financial year 2023-24. The company had registered a profit of Rs 410 crore in the same quarter of the previous financial year. Operating income during the period stood at Rs 6,258 crore, compared to Rs 6,247 crore in the fourth quarter of 2022-23.
Dividend also announced
The tire manufacturer’s profit increased by 65 percent year-on-year to Rs 1,722 crore for the entire financial year 2023-24. During this period, operating income increased by three percent to Rs 25,378 crore. The company’s board has recommended a dividend of Rs 6 per share (600 per cent) for the financial year 2023-24.
