White Iris Investment (Warburg Pincus entity) is likely to sell a 3% (1.88 crore shares) equity stake in tyre manufacturer Apollo Tyres Ltd, with an option to upsize the deal, sources close to the development said.
The investment firm aims to raise $100 million through this transaction, sources told CNBC-TV18.
The floor price for the anticipated block deal of Apollo Tyres is set at ₹440 per share, representing a 2% discount to the current market price (CMP), according to multiple people familiar with the situation.
A 90-day lock-in period is stipulated after this share sale, the sources added.
Apollo Tyres reported a 165% year-on-year (YoY) jump in net profit at ₹473.3 crore for the second quarter that ended September 30, 2023. The company's revenue from operations increased 5.4% to ₹6,279.6 crore against ₹5,956 crore in the corresponding period of the preceding fiscal.
At the operating level, EBITDA jumped 62.9% to ₹1,159.8 crore in the second quarter of this fiscal over ₹711.9 crore in the corresponding period in the previous fiscal.
The company said the cost of materials consumed was lower at ₹2,634.92 crore in the second quarter of the ongoing fiscal against ₹3,101.56 crore in the year-ago period. Total expenses were also lower at ₹6,612.81 crore versus ₹5,724.66 crore a year ago.
Shares of Apollo Tyres Ltd ended at ₹452.85, up by ₹2.15, or 0.48%, on the BSE.
(Edited by : Shoma Bhattacharjee)
First Published: Dec 18, 2023 8:58 PM IST
