Swiss Finance Corporation has acquired 55.3 lac shares of Apollo Tyres for a total of R35.877 Cr through open market transaction hiking its stake by 1.097% to 2.49%. The company purchased 2973038 shares from NSE at R64.79 and the remaining 2,556,962 shares from BSE at R64.98 apiece.
The foreign investor had bought into the tyre company through purchase of 70 Lac shares at R50 Cr in July this year, through similar transaction.
Earlier this year it had also bought stake in MCX on the other hand offloaded stake in YES bank.
Apollo Tyres had been in news recently for its high value outbound acquisition of the American company, Cooper Tire & Rubber Company for $2.5 Bn, which had slightly surpassed the Tata-JLR deal of $2.3 Bn in 2008.
Its international presence was further promoted through its three-year partnership deal with Britain's leading Premier League football club Manchester United for creating football-based play zones for local communities in India and UK using recycled rubber.
Though there is sluggish demand prevailing in the economy for automobiles, the company reported a marginal 0.8% growth in sales from a year earlier with revenue of R2164.71 Cr. The sales were driven by Europe and African operations.
Sumitomo Rubber Industries of Japan was planning takeover of Apollo Tyres South Africa including the Ladysmith Tyre plant and Dunlop Brand rights in Africa.
The Indian tyre production is expected to reach almost 20 crores units by 2016-17. Currently India has 40 listed tyre manufacturing companies, out of which the top 10 account for over 96 % of the country’s total tyre production. The tyre export market in India is valued at Rs. 3600 crores.
The radial tyre segment which has seen a rapid increase in recent times is the new highlight of the industry. The segment would be the focus area for Indian tyre manufactures as it is expected to grow at about 15 percent over the next few years to Rs. 393 billion by 2015.
In this space, TVS Automobile Solutions Limited had formed a JV with the U.S based Myers Tire Supply International Inc to promote both the Myers range of products and TVS ASL’s tools and equipment business in India.; Large buyout fund KKR had entered into a definitive agreement to acquire 90% stake in Alliance Tire Group a global tire maker specializing in producing off-highway tires from Warburg Pincus and Yogesh Mahansaria, founder of ATG.
State-run Oil and Natural Gas Corporation and Shell India are in talks with Nagarjuna Oil Corporation for a strategic stake in Nagarjuna’s Cuddalore refinery, BS states. The project is jointly promoted by Nagarjuna Fertilizers and Chemicals Limited, Tata Petrodyne, Uhde Gmbh and TIDCO.
Amidst governments banning taxi aggregators, BookMyCab has raised an undisclosed amount of funding from Contrarian Vridhhi Fund-I along with existing investors including Mumbai Angels and YourNest Angel Funds.