Apollo Pipes Eyes Tiles Market, Board Clears ₹300-Crore Expansion

Mumbai: Apollo Pipes has approved an investment of up to Rs 300 crore to enter the tiles and ceramics market, alongside a preferential warrant issue that could raise Rs 189.10 crore.

The company’s board cleared both proposals at its meeting on 31 August 2026, according to a filing submitted to the BSE and National Stock Exchange.

What has been approved?

The investment will be routed through one or more subsidiaries proposed to be incorporated by Apollo Pipes. These entities will manufacture, trade, market and distribute tiles, ceramics and allied products.

The plan also permits contract manufacturing and the acquisition of operational, profitable manufacturing businesses, giving the company flexibility over how it builds its presence in the sector.

Who will lead execution?

The board has authorised Managing Director Sameer Gupta and Joint Managing Director Arun Agarwal, acting separately, to complete the required steps.

They will decide the structure and timing of the investment, incorporate the proposed subsidiaries and take other necessary actions within the board-approved Rs 300-crore ceiling.

How will funds be raised?

Apollo Pipes also plans to issue up to 31 lakh fully convertible warrants at Rs 610 each, including a premium of Rs 600, to eight identified non-promoter investors for cash.

The proposed issue, aggregating up to Rs 189.10 crore, requires shareholder and statutory and regulatory approvals. Each warrant can be converted into one paid equity share of Rs 10 within 18 months of allotment.

Why raise authorised capital?

To accommodate shares issued after warrant conversion, the company plans to increase its authorised share capital from Rs 50 crore to Rs 60 crore, divided into six crore equity shares of Rs 10 each.

The capital clause in the memorandum of association will also be amended, subject to members’ approval.

Where will ownership change?

Upon full conversion, the eight proposed investors will hold 6.31 percent on a fully diluted basis. AGDG Enterprises LLP would hold the largest portion at 2.44 percent , followed by Rachita Gupta at 1.63 percent .

Disclaimer: This article is based on Apollo Pipes’ exchange filing and is intended solely for informational purposes, not independent investment advice.