Warbug Pincus to invest Rs 1,080 cr in Apollo Tyres

Apollo Tyres on Wednesday said private equity firm Warburg Pincus will invest Rs 1,080 crore (around USD 150 million) in the company.

The company's board on Wednesday has approved an issuance of compulsorily convertible preference shares in the company worth Rs 1,080 crore to an affiliate of Warburg Pincus, Apollo Tyres Ltd said in a statement.

The investment represents a primary capital infusion into the company and is subject to shareholder and regulatory approvals, it added.

"Their (Warburg Pincus) investment is a strong vote of confidence in our business, management team and growth prospects. I believe the company will benefit from the backing of a large financial investor of their pedigree and our partnership will further strengthen Apollo Tyres' board and governance," Apollo Tyres Chairman and Managing Director Onkar S Kanwar said.

Commenting on the development, Warburg Pincus India Managing Director Vishal Mahadevia said, "We see a compelling growth story in Apollo Tyres and believe the company is well-positioned to build upon the strong leadership position it has carved out within the industry."