2 days ago
Apollo Pipes Eyes Ceramics Entry With Rs 300 Crore Investment
Apollo Pipes, a company that makes pipes, wants to enter the tiles and ceramics business.
It plans to create a new subsidiary for this purpose.
The company may invest Rs 300 crore in the subsidiary.
The new business could make, sell, and distribute tiles and ceramics.
Apollo Pipes also plans to issue 31 lakh warrants to eight investors.
These warrants could later be changed into company shares.
The warrants are priced at Rs 610 each and could raise Rs 189 crore.
The company needs shareholder and regulatory approvals for the plans.
Apollo Pipes plans to invest Rs 300 crore to incorporate a subsidiary focused on tiles and ceramics.
The proposed subsidiary will manufacture, trade, and distribute tiles, ceramics, and related products.
The board approved 31 lakh fully convertible warrants at Rs 610 each, raising Rs 189 crore.
The warrants will be issued preferentially for cash to eight non-promoter investors, who will hold 6.31% after the issue.
Apollo Pipes plans to increase authorised share capital from Rs 50 crore to Rs 60 crore for warrant conversions.
- Who
- Apollo Pipes, its board, and eight non-promoter investors.
- What
- The company approved a Rs 300 crore ceramics subsidiary, a Rs 189 crore warrant issue, and an authorised share-capital increase.
- Where
- The proposed business will operate in the country's tiles and ceramics market.
- When
- The decisions were made at a board meeting on August 31 after market hours.
- Why
- Apollo Pipes wants to enter the tiles and ceramics business and maintain sufficient authorised capital for shares issued when warrants are converted.
Key facts
- Proposed investment
- Rs 300 crore for a tiles and ceramics subsidiary
- Warrants
- 31 lakh fully convertible warrants
- Warrant price
- Rs 610 per warrant, including a Rs 600 premium
- Potential proceeds
- Rs 189 crore
- Post-issue investor stake
- 6.31% collectively for the eight investors
- Authorised share capital
- To increase from Rs 50 crore to Rs 60 crore
- Share price
- Rs 627.05 at Monday's close, nearly 1% below the previous close
Sources
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