Warburg Pincus to Invest USD 150 Million in Apollo Tyres

Leading private equity firm, Warburg Pincus has acquired a stake worth USD 150 million in the Indian tire manufacturer, Apollo Tyres. Apollo Tyres said in a press release that the company’s Board of Directors has approved the issue of compulsorily convertible preference shares in the company which are worth about USD 150 million to one of the affiliates of Warburg Pincus. Warburg Pincus is a renowned firm in the field of provate equity and was established back in 1966. The company has as many as 19 private equity funds and they have invested in more than 190 companies across the globe. The focus is primarily on growth investing. Apollo sees the investment from Warburg Pincus as a primary capital infusion into the company and the deal is subject to shareholder and regulatory approvals.

Commenting on the deal, Onkar S Kanwar, Chairman and Managing Director, Apollo Tyres Ltd said that it was a strong vote of confidence in Apollo’s business, management team and growth prospects. He went on to express his belief that backing of such a large financial investor would further strengthen the company.

Vishal Mahadevia, Managing Director and Head, Warburg Pincus India, said that the firm saw Apollo as a compelling growth story. He said that the company is well-positioned to build upon the strong leadership position it has carved out within the industry.

Mahadevia concluded, “Warburg Pincus is excited to partner 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.”