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.”
Manju Mathew, an MBA in marketing, completed publisher training courses from the Oxford Brookes University and New York University. She started with marketing and PR roles before moving on to her current position as a full time writer. Currently living in Dubai, her life as an expat has sharpened her observation skills and flair for writing. She enjoys writing about luxury cars like Ferrari, Lamborghini, etc even if she can only dream of owning them.
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