Shares of APL Apollo Tubes (APL Apollo) hit a new high of Rs 1,394, up 4 per cent on the BSE, in the intra-day trade on Monday, surging 30 per cent in the past six trading days after the company’s board approved the merger of Shri Laxmi Metal Udyog and Apollo Tricoat Tubes (Apollo Tricoat) with the company. The stock was trading higher for the 10th straight day and has rallied 48 per cent during the period.
Apollo Tricoat’s minority shareholders will receive one equity share in APL Apollo for each equity share held Apollo Tricoat. This transaction has been effected by way of a scheme of amalgamation and is subject to shareholder approval at each of APL Apollo and Apollo Tricoat, as well as regulatory approvals. This transaction is expected to close in Q3FY22 with appointed date of merger being April 1, 2021
Shares of APL Apollo Tubes (APL Apollo) and Apollo Tricoat Tubes (Apollo Tricoat) rallied up to 10 per cent to hit their respective all-time highs on the BSE in intra-day trade on Monday after their boards approved the merger of Shri Lakshmi Metal Udyog and Apollo Tricoat with APL Apollo. The stock of APL Tricoat rallied 10 per cent to Rs 1,020, while APL Tubes gained 5 per cent to Rs 1,125. In comparison, the S&P BSE Sensex was up 1.2 per cent at 49,693 points at 09:25 am. Apollo Tricoat’s minority shareholders will receive one equity share in APL Apollo for each equity share held in Apollo Tricoat. This implies a premium of 16 per cent to the previous closing price for Apollo Tricoat’s shareholders. The merger will result in an increase of 10.8 per cent in APL Apollo’s share capital.
Gap up opening seen; but FPIs hold the key
March 01, 2021
Investors would closely track bond yields, geopolitical tensions and inflation data for further market direction
Global and Asia-Pacific markets point to a strong opening for Indian markets. SGX Nifty, which is ruling at 14,751, points to at least a 200-point gap-up opening for Nifty. The Nifty March futures on Friday crashed almost 4 per cent to close at 14,578.
Asia Pacific markets too opened with sharp gains. Key markets such as Japan, China, Australia and Hong Kong are up between 1 and 2 per cent.
Foreign fund flows will continue to dictate the market direction, said market experts. In one of the biggest pull-outs in recent times, FPIs on Friday (net) sold shares worth ₹8,295 crore. The market crashed almost 4 per cent.
Apollo Tricoat Tubes surged 8.20% to Rs 1000 after its board approved a draft scheme of amalgamation of the company and Shri Lakshmi Metal Udyog with APL Apollo Tubes.
The scrip gained 10.36% to hit an intraday high of Rs 1,020 in trade today, which is also a record high for the counter.
Meanwhile, shares of APL Apollo Tubes shed 0.12% to currently trade at Rs 1069 on the BSE.
APL Apollo and Apollo Tricoat are engaged in the business of production of ERW steel tubes. Shri Lakshmi is engaged in the business of production of ERW steel tubes and GP Coils.
The amalgamation would combine the businesses under APL Apollo brand with wide product offerings and geographical footprint leading to a stronger market presence.
APL Apollo Tubes Limited approves merger of Shri Lakshmi Metal Udyog Ltd and Apollo Tricoat Tubes Ltd with itself
Posted On: 2021-02-28 03:54:35 (Time Zone: Arizona, USA)
The Board of Directors of APL Apollo Tubes Limited ( Company ), at its meeting held today, i.e., on February 27, 2021, has considered and approved a draft scheme of amalgamation of Shri Lakshmi Metal Udyog Limited ( Shri Lakshmi ) and Apollo Tricoat Tubes Limited ( Apollo Tricoat ) with the Company and their respective shareholders and creditors, as may be modified from time to time ( Scheme ), under Sections 230 to 232 of the Companies Act, 2013.
The Scheme is subject to receipt of approvals from the shareholders and creditors of the Company as may be directed by the National Company Law Tribunal, Delhi bench ( NCLT ), BSE Limited, National Stock Exchange of India Limited and approval of other regulatory or statutory authorities as may be required.