Banks and financials make up close to 60% of QIP issuance in FY24

Apollo Pipes on Tuesday (March 26) said it has acquired 53.57% share capital and voting rights in Kisan Mouldings Ltd (KML) for ₹118.40 crore.

“In this regard, we wish to inform that the company has completed the acquisition of 53.57% share capital and voting rights in KML on March 26, 2024, as per terms of the definitive documents executed in this regard,” according to a stock exchange filing.

Under the transaction, Apollo Pipes has secured its position through preferential issue allotment of 6,40,00,000 equity shares, at an issue price of ₹18.50 per share, having a face value of ₹10 each. As a result of the capital infusion, Kisan Mouldings Ltd has become a subsidiary of Apollo Pipes.

The acquisition aligns seamlessly with Apollo’s overarching strategy to fortify its foothold as a premier manufacturer in the Plastic Pipe Industry within India. By integrating KML into its portfolio, Apollo aims to expand its legacy while unlocking synergistic benefits that promise greater market penetration and entry into new end-user segments.

Additionally, the acquisition will facilitate Apollo’s geographical expansion, particularly in the Western and Central regions, further leveraging the esteemed KML network for accelerated growth.

KML brings an extensive range of high-quality products, encompassing a wide range of SKU’s including plastic pipes and fittings for building and agricultural purposes and cost-effective PVC products, available in various designs, colours, and functionalities, to cater to diverse preferences and purposes, the company added.

Shares of Apollo Pipes Ltd ended at ₹641.80, down by ₹8.70, or 1.34% on the BSE.