APL Apollo Tubes buys 4.4% stake from Shankara promoterAPLAPOLLO - 1619 Change: -26.25 (-1.60 %)
News: APL Apollo Mart (a wholly owned subsidiary of APL Apollo Tubes) has bought 10,00,000 equity shares (4.38% of the total paid up capital) of Shankara Buildcon at a price of Rs.755/ share from Shri Sukumar Srinivas (promoter) through stock exchange. Also, a meeting of the Board of Directors will be held on March 24, 2022 to mainly consider raising funds by way of preferential issue of share warrants. APL Apollo Mart has proposed to subscribe to 14,00,000 share warrants convertible into equity shares (5.77% of fully diluted capital upon conversion). APL Apollo Mart has offered a price of Rs.750/warrant.
Views: The infusion of fund is to synergise operation for APL as Shankara is among APL Apollo’s key distributors. On the business front, however, Shankara continues to struggle with single digit return ratio, no growth in the last two to three years and low single digit margins