APL Apollo Tubes surges 3 per cent on acquisition plan
APL Apollo Tubes, the leading branded steel tubes manufacturer, is going to acquire tube manufacturing unit of Shankara Building Products.
The unit is located in Southern India and has capacity of 2,00,000 MTPA. The consideration for acquisition would be Rs 70 crore, which would be funded through internal accruals.
APL Apollo’s existing manufacturing units catering to the southern markets are operating at over 80 per cent utilisation levels. In addition, Shankara being the second largest player in the South India market, the company believes that this acquisition was an excellent opportunity to build and consolidate market share of APL Apollo in the South India markets.
APL Apollo Tubes is a leading manufacturer and exporter of steel pipes and tubes, aluminised steel tubes, black steel tubes, hot dipped and pre-galvanised steel tubes, fence tubes and structural steel.
On Monday, the stock of APL Apollo Tubes opened at Rs 1486, up by almost 2 per cent from its previous close of Rs. 1456.55. The stock has made an intra-day high of Rs. 1503.20. At 3:07 p.m., the stock was trading at Rs. 1494 on the BSE.