APL Apollo Tubes Limited — Capital/Financing Update 2018

Oct 18, 2018

APL/SECT/DLH/SE: 2018-19 18m O<,:lol:>i-:s2r 2018

Litegtiioriigfiling,

National Stock Exchange of India Limited Department of Corporate Services/Listing "Exchange Plaza" Bandra—Kurla Complex, BSE Limited Bandra (E), Mumbai—400051 Dalal Street, Fort,

Phiroze Jeejeebhoy Tower, Mumbaiw400001

NSE Symbol : APLAPOLLO Scrip Code : 533758

Re: Outcome for the Meeting of Board of Directors of ARL Apollo Tubes Limited ('the Company') pursuant to Regulation 30 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015

Dear Sir/Madam,

This is in reference to the above captioned subject and in terms of the provisions of Regulation 30 of SEBl (Listing Obligations and Disclosure Requirements) Regulations, 2015 ('Listing Regulations'), we wish to inform that the Board of Directors of the Company in their meeting held today ire. Thursday, October 18'", 2018 at 4:00 PM. concluded at 6.45 PM, at the Corporate office of the Company situated at 36, Kaushambi, Near Anand Vihar Terminal, Delhi NCR, Ghaziabad, Uttar Pradesh .-201010, has inter—alia transacted the following businesses:

Considered and approved the acquisition/investment by Shri Lakshmi Metal Udyog Limited, a wholly owned subsidiary of the Company by way of entering into a Share Purchase Agreement for the acquisition of 8030030 Equity Shares and Options attached to 4300000 Warrants of Apollo Tricoat Tubes Limited ('Target Entity') which will together represent 4043% of the fully diluted share capital of the Target Entity in terms of the provisions of Section 186 of the Companies Act, 2013 and relevant rules thereto. The aforesaid acquisition/investment would trigger the open offer requirement in terms of the provisions of SEBl (Substantial Acquisition of Shares & Takeovers) Regulations) 2011,

The details of the acquisition/investment as required to be disclosed in terms of the SEBl Circular no. ClR/CFD/CMD/4/2015 dated September 09, 2018 is mentioned in the 'Annexure't

Kindly take the above information in your records. Thanking you

Yours faithfully For APL Apollo Tubes Limited

thrrwflv . WW

Adhish Swaroop Company Secretary Encl: a/a

ANNEXURE

Particulars	Details
BriefofdetailstheTarget	Name: ApolloTricoat Tubes Limited
Entity	Turnover:Rs. 191.38 Crore (Ason 31St March,2018)
	Networth:Rs. 112.35 Crore (Ason 31'" March,.2018)
Whetherwouldthe acquisition	of sharesThe acquisitionof the TargetEntity would be
fallwithinrelatedparty	done bythe whollyowned subsidiaryof theCompany
and whetherthetransaction(s)	Le. Shri Lakshmi Metal UdyogLimited. The Company
promoter/promotergroup/	is.anditsownedShriLakshmiwhollysubsidiary
havegroupcompaniesany	MetalLimitedare promotedandcontrolledUdyogby
interesttheinentitybeing	Executive ChairmanMr. Sanjay& other familyGupta,
ofIfnatureacquired?yes,	members.
interestthereofdetailsand	Mr.RahulofsonisMr.whoGuptaSanjayGupta,
and whetherthesame is done	acquired control over the Targetentity pursuant to the
"armsatlength".	completion of Takeover openoffer in May2018.
	thesharesofby theAccordingly,acquisitionwholly
	ie.ownedShriLakshmiMetalsubsidiaryUdyog
	Limited, would be a Related PartyTransaction in terms
	of theprovisions of Section 188 ofthe CompaniesAct,
	2013 and the same would beexecuted at arm length
	basis only.
whichtotheindustryentity	The Targetentity post to the completionof Takeover
acquiredbeingbelongs	initiatedthetooffer,settheopenprocessup
	foroftricoatedmanufacturingfacilitymanufacturingtubes.
	Shri Lakshmi Metal UdyogLimited, the Acquirerin the
	casethebusinessof manufacturingispresentinof
	steel tubes and pipes.
ofandeffectsObjects	TheaswelltheashaveAcquirerTargetCompany
butnotacquisition(including	business.Theinsignificantwillsynergyacquisition
limitedofdisclosureto,	enable best utilization of thissynergy as well as permit
forreasonsofacquisition	toincreasewillititsitalsoenablethecapacity.
ifitsbusinessistargetentity,	acquirer to expandits productbasket.
outsideofthemainline
businessofthe listedentity)
Briefofdetailsany	theTherearenoforstatutoryapprovalsrequired
orgovernmentalregulatory	acquisition.
fortheapprovalsrequired
acquisition
indicativefortimeperiod	The acquisition/investmentwould triggerthe openoffer
ofthecompletionacquisition	termsof SEBlinof Shares(SubstantialAcquisition
	and2011andTakeovers)Regulations,accordingly,
	the time periodfor completionof acquisitionwould be
	thetoofSEBIaccordingprovisions(Substantial
	ofSharesandAcquisitionTakeovers)Regulations,
	2011,

swapsame
Costofortheacquisitionat whichthesharesarepriceacquired	price sing/1'20shares wouldbeTheacquired at a(Rupees One Hundred and Twenty)per share only
ofPercentageshareholdinglcontrolandor/acquirednumberofsharesacquired	The Share Purchase Agreementto acquire80,30,030Sharesandattachedto43,00,000EquityOptionsWarrants from Mrs Rahul Guptawill togetherrepresent40.43% of the fullydiluted share capitalof the TargetEntity.ShriLakshmiMetaltheFurther»,Limited,UdyogwouldmaketheTakeoverOfferinAcquirerOpentermsoftheofSEBIprovisions(SubstantialofSharesandAcquisitionTakeovers)Regulations,and if the offer is fully2011subscribed, then the totalofthewouldbe20,260,030shareholdingAcquirerShares66.43%oftheshareEquityrepresentingcapital of the TargetEntity on fullydiluted basis
Briefaboutthebackgroundoftermsinentityacquiredofbusinessproducts/linedateofacquired,oflastincorporation,history3inturnover,yearscountrywhichthehasacquiredentityandotherpresenceanyinformationsignificant(inbfiefi	Rahulsubstantialsharesandl/ riGuptaacquiredcontrol over the Targetentity in the yearMay 2018 andsince then)Rahul Guptaset upthe manufacturingMr.facility for manufacturingof tricoated tubesinMallur,Karnataka.dateTheofoftheisincorporationTargetentityJanuary 12, 1983.The manufacturingplant of the Targetentity is locatedlndia.in Bengaluru,The turnover of theCompany in financial year2015—161762201617wasRs.was61.90CroreRs.Crore)