India's leading branded structural steel tube manufacturer APL Apollo Tubes Ltd announced a minority equity investment by a wholly owned subsidiary APL Apollo Mart Limited in Shankara Building Products Ltd through a combination of purchase of secondary promoter shares today and proposed preferential allotment of convertible warrants. APL Apollo and Shankara have a business association of over 15 years, with Shankara being one of the key distributors of APL Apollo's products. APL Apollo's association will ensure consistency in sales through Shankara's retail and wholesale network and will create synergies for APL Apollo Tubes.Investment HighlightsPurchase of 1,000,000 Equity shares at INR 755 per share from a person belonging to promoter categoryProposed subscription of 1,400,000 warrants at INR 750 per warrant (price to be approved by the Board of Directors of Shankara in accordance with the applicable SEBI Regulations) fully convertible into equity shares by way of preferential allotment, subject to receipt of requisite approvals by Shankara.Total holding of Apollo Mart in Shankara after issue of the warrants will be 9.90% on fully diluted basisTotal investment size of up to INR 1,805 millionImmediate investment of INR 1,018 million (Secondary market purchase +25% warrant subscription money)Remaining investment of INR 787 million within 18 months (75% on warrant conversion)APL Apollo Tubes Limited is India's leading structural steel tube manufacturer. Headquartered at Delhi NCR, the Company operates 10 manufacturing facilities with a total capacity of 2.6 million tonnes. It has a pan-India presence with units are located in Sikandarabad, Hyderabad, Bangalore, Hosur, Raipur, Dujana, Malur and Murbad.
India's leading branded structural steel tube manufacturer APL Apollo Tubes Ltd announced a minority equity investment by a wholly owned subsidiary APL Apollo Mart Limited in Shankara Building Products Ltd through a combination of purchase of secondary promoter shares today and proposed preferential allotment of convertible warrants. APL Apollo and Shankara have a business association of over 15 years, with Shankara being one of the key distributors of APL Apollo's products. APL Apollo's association will ensure consistency in sales through Shankara's retail and wholesale network and will create synergies for APL Apollo Tubes.Investment HighlightsPurchase of 1,000,000 Equity shares at INR 755 per share from a person belonging to promoter categoryProposed subscription of 1,400,000 warrants at INR 750 per warrant (price to be approved by the Board of Directors of Shankara in accordance with the applicable SEBI Regulations) fully convertible into equity shares by way of preferential allotment, subject to receipt of requisite approvals by Shankara.Total holding of Apollo Mart in Shankara after issue of the warrants will be 9.90% on fully diluted basisTotal investment size of up to INR 1,805 millionImmediate investment of INR 1,018 million (Secondary market purchase +25% warrant subscription money)Remaining investment of INR 787 million within 18 months (75% on warrant conversion)APL Apollo Tubes Limited is India's leading structural steel tube manufacturer. Headquartered at Delhi NCR, the Company operates 10 manufacturing facilities with a total capacity of 2.6 million tonnes. It has a pan-India presence with units are located in Sikandarabad, Hyderabad, Bangalore, Hosur, Raipur, Dujana, Malur and Murbad.
