US-Based Capital Group Acquires 1% Stake in APL Apollo Tubes

On Wednesday, March 13, 2024, US-based financial services company Capital Group bought a 1% stake in APL Apollo Tubes through an open market transaction.

Details of the Purchase

Financial service provider Capital Group acquired the shares of APL Apollo Tubes on the NSE through its affiliate New World Fund Inc. Capital Group is one of the oldest financial organisations in the USA. They are one of the largest investment organisations in the world. As of December 31, 2023, Capital Group has about $2.5 trillion in assets under management.

Capital Group’s affiliate, New World Fund Inc., bought 27,89,398 shares, amounting to a 1% stake in APL Apollo Tubes. The shares were picked up at an average of ₹1,601.10 per share, where the transaction value was about ₹446.61 crore.

Meanwhile, another US-based company, Principal Financial Group, offloaded 15.31 lakh shares of APL Apollo Tubes at an average price of ₹1,600.16 per share. The value of this deal was about ₹245.04 crore.

On Thursday, March 14, 2024, the share price of APL Apollo Tubes opened at ₹1,489.70 and around 10:26 AM, it touched the day’s high at ₹1,525.00. The company gave about 23.89% returns in one year.

About APL Apollo Tubes

APL Apollo Tubes is one the largest producers of structural tubes in India. The company has 11 manufacturing facilities with a cumulative manufacturing capacity of 3.6 Million Tonnes. APL Apollo Tubes offers a wide range of products, including more than 2,000 varieties of pre-galvanised tubes, galvanised tubes, structural steel tubes, MS black pipes, and more. The company has a widely spread 3-tier distribution network and more than 800 dealers in India.

APL Apollo Tubes provided a net profit of ₹102.91 crore as of the quarter ended December 2023. During the same quarter, i.e., December 2023, the company’s revenue was ₹3,145.52 crore.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.