White Iris Investment, a foreign portfolio investor in Apollo Tyres, is likely to offload three percent equity it holds in the company via a block deal, CNBC-TV18 reported on December 18, citing sources.
White Iris aims to raise $100 million through the sale of three percent equity, along with an upsize option, the persons privy to the development told the news channel.
The floor price for the block deal is likely to be Rs 440 per share, marking a discount of two percent as against the current market price, the report said.
A lock-in period of 90 days would come into effect following the share sale, CNBC-TV18 further added.
White Iris held around 5.1 lakh shares, accounting for 8.04 percent stake, in Apollo Tyres as of September 30, 2023, as per the shareholding pattern available with the BSE.
Notably, Apollo Tyres had posted a 164 percent on-year surge in net profit at Rs 474.3 crore in the second quarter of fiscal year 2023-24. The company's revenue from its operations recorded a healthy growth of 5.4 percent, reaching Rs 6,280 crore over the year-ago period.
"Our operations have experienced positive revenue growth, and, indicating further demand improvement in the future. We are witnessing encouraging signs, particularly from India," Apollo Tyres Chairman Onkar Kanwar said on November 7, after the quarter results were out. "We remain steadfast in our commitment to achieving profitable growth, aligned with our long-term vision."
Meanwhile, the company's shares edged higher at the stock market during the trading session on December 18. The scrip settled at Rs 453.05 apiece on the National Stock Exchange (NSE), higher by 0.55 percent as against the previous day's close.
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