Apollo to invest $500 mn in Welspun | business | Hindustan Times
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Apollo to invest $500 mn in Welspun

business Updated: Jun 29, 2011 22:10 IST
Reuters
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Reuters
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Private equity fund Apollo Global Management LLC will invest about $500 million in domestic steel pipe manufacturer Welspun group, marking the second-biggest private equity investment in India this year.

This is Apollo’s second investment in India after it poured $100 million into satellite television operator Dish TV in 2009.

Welspun plans to use the funds to expand its presence in steel and infrastructure and raise its stake in group entities, said BK Goenka , chairman. “We have the vision of becoming iron ore to steel pipes business. This step is in that direction. Apollo will not only bring the cash on table but will also provide their expertise in metals.”

Apollo will invest $290 million in Welspun Corp through a preferential allotment of convertible debentures and global depository receipts (GDR).

The price reflects a premium of 33% to Welspun’s closing price on Tuesday.