Apollo Pipes announced that it has made an additional investment by acquiring a 0.50% equity stake in its subsidiary, Kisan Mouldings (KML), through a secondary purchase.
Kisan Mouldings, a subsidiary of the company, is engaged in the manufacturing of PVC pipes, fittings, UV-resistant multi-layer water tanks, and allied products. The company is one of the largest manufacturers of pipes for various applications, including water supply, sanitation, sewerage, construction, cable ducting, drinking water, tube wells, and submersible pumps. As of now, the total paid-up equity share capital of KML stands at Rs 119.46 crore, with a turnover of Rs 268.01 crore for the financial year ending 31 March 2024.
With this secondary purchase, Apollo Pipes has increased its stake in KML from 55.58% to 56.08%, marking an increase of 0.50%. The acquisition is valued at approximately Rs 2.89 crore, paid in cash.
Apollo Pipes, as the holding company of KML, views this stake acquisition as a strategic investment to further strengthen its position in the market. The transaction, however, does not qualify as a related party transaction, and no promoter or group company has any interest in the acquisition.
Apollo Pipes is among the top 10 leading piping solution providers in India. With more than 3 decades of experience in the Indian Pipe Market, the company holds a strong reputation for high-quality products and an extensive distribution network.
The company had reported 34.3% decline in standalone net profit to Rs 5.97 crore despite a 10.4% increase in sales to Rs 244.64 crore in Q3 FY25 over Q3 FY24.
Source: Business-Standard