Apl Apollo Tubes Limited · NSE:APLAPOLLO
Apl Apollo Tubes — Merger or Acquisition (March 2022)
13 slides from Apl Apollo Tubes's merger presentation, Mar 21, 2022
Slide 1: Exchange filing cover letter
APLAPOLLO STEEL PIPES Sudesh Group APL/SECT/DLH/SE: 2021-22 21 March 2022 Electronic Filing National Stock Exchange of India Limited | Department of Corporate Services/Listing “Exchange Plaza” Bandra-Kurla Complex, | BSE Limited Banara (E), Phiroze Jeejeebhoy Tower, Mumbai-400051 Dalal Street, Fort,
Slide 2: Minority Equity Investment in Shankara Building Products Ltd (press release)
APL Apollo Tubes Limited 37, Hargobind Enclave, Vikas Marg, Delhi – 110 092 Re: Minority Equity Investment in Shankara Building Products Ltd Delhi, Mar 21, 2022: APL Apollo Tubes Ltd (APL Apollo), India’s leading branded structural steel tube manufacturer, announced a minority equity investment by A
Slide 3: About APL Apollo Tubes Limited
About APL Apollo Tubes Limited APL Apollo Tubes Limited (APL Apollo) BSE: 533758, NSE: APLAPOLLO 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 tons. It has a pan-India presence
Slide 4: Minority Equity Investment in Shankara Building Products Ltd
Minority Equity Investment in Shankara Building Products Ltd 21 March 2022
Slide 5: Contents
Contents • Transaction Overview • Investment Details • Investment Rationale • Aligned with APL Apollo’s growth APL APOLLO TUBES Plan • Shankara Overview • Case Study 2
Slide 6: Transaction Overview
Transaction Overview APL Apollo Mart Ltd(A wholly owned subsidiary of APL Apollo Tubes Ltd) to buy minority equity stake in Shankara Building Products Ltd • 1,000,000 shares from Promoters @ Rs755 per share • 1,400,000 preferential convertible warrants @ Rs750 per warrant * • Total holding after iss
Slide 7: Investment Details
Investment Details Total investment outlay: Rs 1,805mn • Immediate: Rs 1,018mn (Secondary purchase+25% warrant subscription money) • Within 18 months: Rs 787mn (75% on warrant conversion) Investment to be funded from internal cash flows Shankara amongst APL Apollo’s key distributors APL APOLLO TUBES
Slide 8: Investment Rationale
Investment Rationale Investment aligned with Launch platform for APL Apollo’s APL Apollo’s growth plan new products Existing Business association Synergies through Shankara’s for last 15 years Retail/Wholesale network APL APOLLO TUBES Shankara amongst APL Apollo’s Expansion of structural steel key d
Slide 9: Aligned with APL Apollo's growth plan
Aligned with APL Apollo’s growth plan Shankara’s management to bring In-line with APL Apollo’s growth retail/wholesale expertise to plans for next 3 years accelerate growth plans Attractive revenue and cost Platform for APL Apollo to launch new synergy potential value added products APL APOLLO TUBES
Slide 10: Shankara Overview
Shankara Overview Shankara Building Products: One of India's leading organized retailer/wholesaler of home improvement and building products Revenue of Rs22bn (annualized FY22) with Steel tubes/products forming majority of sales Presence in 10 states with cumulative store APL APOLLO TUBES base of 90
Slide 11: Case Study – Previous Experience with Shankara
Case Study – Previous Experience with Shankara APL Apollo acquired Shankara’s 200k ton Hyderabad plant for Rs 700mn in April 2019 APL Apollo recovered its investment cost within 3 years boosting overall ROCE Plant contribution in expansion of Southern India sales APL APOLLO TUBES Sales boost from Mo
Slide 12: Similar global transactions - Case Studies
Similar global transactions-Case Studies Arcelor Mittal-DSTC FZCO Carrier Corp-AT Distributor UFP Industries- Shelter Products Acquirer: Arcelor Mittal Acquirer: Carrier Corp Acquirer: UFP Industries Target Company: DSTC FZCO Target Company: AT Distributor Target Company: Shelter Products Industry:
Slide 13: Thank You
Thank You Deepak Goyal Chief Financial Officer deepakgoyal@aplapollo.com Anubhav Gupta Chief Strategy Officer anubhav@aplapollo.com 10
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