Warburg Pincus Exits Apollo Tyres for Rs 1,073 Crore

New Delhi, May 22 (PTI) Private equity major Warburg Pincus on Wednesday exited Apollo Tyres by selling its entire 3.54 per cent stake in the tyre manufacturing company for Rs 1,073 crore through open market transactions.

US-based Warburg Pincus through its arm White Iris Investment Ltd offloaded the shares of Gurugram-based Apollo Tyres through 14 block deals on the BSE.

As per the data on the BSE, White Iris Investment Ltd sold a total of 2,24,74,903 shares of Apollo Tyres.

The shares were offloaded at an average price of Rs 477.35 per piece, taking the transaction value to Rs 1,072.84 crore.

A clutch of domestic mutual funds (MFs), an insurance company and foreign investors were among the buyers of the shares.

The entities are Edelweiss Mutual Fund (MF), Mirae Asset MF, ICICI Prudential MF, Sundaram MF, ICICI Prudential Life Insurance Company, Societe Generale, Ghisallo Master Fund LP, Goldman Sachs Investments (Mauritius) I, Morgan Stanley Asia Singapore, and Citigroup Global Markets Mauritius.

As of March 2024, White Iris Investment Ltd hold a 3.54 per cent stake in Apollo Tyres, shareholding data with the bourse showed.

On Wednesday, shares of Apollo Tyres gained 1.78 per cent to settle at Rs 490.75 apiece on the BSE.

Last week, Apollo Tyres said its consolidated net profit declined 14 per cent to Rs 354 crore for the March 2024 quarter on account of higher expenses. The company had reported a net profit of Rs 410 crore in the January-March quarter of last fiscal.

Revenue from operations was at Rs 6,258 crore in the period under review compared with Rs 6,247 crore in the fourth quarter of 2022-23.

In December last year, Warburg Pincus divested a 4.5 per cent stake in Apollo Tyres for Rs 1,281 crore through multiple block deals.