An affiliate of global private equity firm Warburg Pincus LLC plans to acquire a $150 million stake in Apollo Tyres Ltd.
On Feb. 26, 2020, Apollo's board of directors approved a transaction that will issue compulsorily convertible preference shares in the company worth approximately $150 million (10.8 million rupees) to the Warburg Pincus affiliate.
The investment represents a primary capital infusion into the company and is subject to shareholder and regulatory approvals, according to a prepared statement released by Apollo.
Apollo Chairman and Managing Director Onkar Kanwar said Warburg Pincus' investment is a strong vote of confidence in Apollo's business, management team and growth prospects. "I believe the company will benefit from the backing of a large financial investor of their pedigree, and our partnership will further strengthen Apollo Tyres' board and governance."
Vishal Mahedevia of Warburg Pincus said the private equity firm sees a compelling growth story in Apollo and believes the company is well-positioned to build upon the strong leadership position it has carved out within the industry.
"Warbug Pincus is excited to parnter with the management team of Apollo Tyres in this journey and looks forward to supporting them during the next phase of the company's growth," said Mahedivia, who is managing director and head of Warburg Pincus India.
