Warburg Pincus arm to sell 3.5% stake in Apollo tyres for Rs 1,040 Crore

White Iris Investment, a subsidiary of Warburg Pincus, is set to sell a 3.5% stake in Apollo Tyres via a block deal on May 22. The transaction, expected to raise Rs 1,040 crore, involves 2.24 crore shares, as reported.

The floor price for the block deal is projected to be between Rs 460 and Rs 465 per share, reflecting a 4% discount to Apollo Tyres' closing price of Rs 482.60 on May 21. The tyre manufacturer's shares dropped by 2% on that day. IIFL is anticipated to broker the deal, which is witnessing robust demand from domestic funds.

This sale follows a previous transaction in December 2023, when Warburg Pincus, through White Iris Investment, sold a 4.5% stake in Apollo Tyres for Rs 1,281 crore.

In recent financial performance, Apollo Tyres reported a 14% decline in consolidated net profit for the March 2024 quarter, amounting to Rs 354 crore, down from Rs 410 crore in the same period the previous year. Revenue from operations remained steady at Rs 6,258 crore compared to Rs 6,247 crore in the corresponding quarter of the prior fiscal year.

Chairman Onkar Kanwar highlighted the company’s strategic focus on profitable growth, noting significant market share gains in Europe. He expressed optimism about the demand outlook across key geographies and product segments.