Emblem FII, a fund advised by MCap Fund Advisors Pvt Ltd, has picked up 5.11 per cent stake in APL Apollo Tubes, a New Delhi-based manufacturer of steel pipes and tubes. The stake has been picked for a little over Rs 18 crore from the markets on Friday.
MCap is an investment advisory firm floated by Subbu Subramaniam, ex-partner at Baring Private Equity Partners (India) Ltd.
Shares of APL Apollo Tubes closed at Rs 148.9, down 0.73 per cent, giving the company a market capitalisation of Rs 348.43 crore. The company’s 52-week high is Rs 231 per unit.
MCap picked up 1.2 million shares of APL Apollo Tubes at Rs 151 per unit on the Bombay Stock Exchange and National Stock Exchange. Part of the shares were sold by Ashok Kumar Gupta, who is part of the promoter group of the company.
While the promoters hold over 48 per cent stake in the company, the rest is held by institutional and public shareholders. Kitara Capital, a private equity firm focused on public market deals, holds 12.8 per cent stake in the company.
For the first six months of FY14, APL Apollo Tubes reported a 41 per cent increase in revenues to Rs 1,266 crore even as net profit fell marginally by 1.5 per cent to Rs 31.97 crore compared with the same period in FY13.
The company has five manufacturing units—two in Delhi, one near Bangalore, one in Hosur (Tamil Nadu) and one near Mumbai. APL Apollo Tubes plans to reach $1 billion revenues and 1 million tonnes per annum manufacturing capacity by 2015.
MCap, which is investing from a $60 million corpus, has made public market deals before in lender City Union Bank and fast moving consumer goods player Jyothy Laboratories.
(Edited by Joby Puthuparampil Johnson)