Warburg Pincus To Invest Rs 1,080 Crore In Apollo Tyres
Apollo Tyres Ltd. on Wednesday said private equity firm Warburg Pincus will invest Rs 1,080 crore (around $150 million) in the company.
The company's board on Wednesday has approved the issuance of compulsorily convertible preference shares in the company worth Rs 1,080 crore to an affiliate of Warburg Pincus, Apollo Tyres said in a statement.
The investment represents a primary capital infusion into the company and is subject to shareholder and regulatory approvals, it added. "Their (Warburg Pincus) investment is a strong vote of confidence in our business, management team and growth prospects. I believe the company will benefit from the backing of a large financial investor of their pedigree and our partnership will further strengthen Apollo Tyres' board and governance," Apollo Tyres Chairman and Managing Director Onkar S Kanwar said.
Commenting on the development, Warburg Pincus India Managing Director Vishal Mahadevia said, "We see a compelling growth story in Apollo Tyres and believe the company is well-positioned to build upon the strong leadership position it has carved out within the industry."
Warburg Pincus is excited to partner with the management team of Apollo Tyres in this journey and looks forward to supporting them during the next phase of the company's growth, he added. Shares of Apollo Tyres on Wednesday closed 3.59 percent lower at Rs 148.85 apiece on the Bombay Stock Exchange.