APL Apollo Raises Rs 400 Crore Through Commercial Papers

New Delhi, July 7, 2025: APL Apollo Tubes Ltd (NSE: APLAPOLLO, BSE: 533758), India’s leading structural steel tube manufacturer, has announced the issuance of Commercial Papers (CPs) aggregating to ₹400 crore. This move, in line with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, demonstrates the company’s strategy for efficient short-term financing.

Key Details of the Commercial Paper Issue:

The company successfully raised funds through two distinct tranches, each for ₹200 crore, with varied maturities and interest rates:

These Commercial Papers are proposed to be listed on BSE Limited, which will further enhance liquidity and transparency for investors.

Understanding Commercial Papers

Commercial Papers are unsecured, short-term debt instruments typically issued by large corporations with high credit ratings to meet their immediate financial obligations, such as managing working capital, financing inventory, or addressing accounts payable. They are a cost-effective alternative to traditional bank loans for short-term funding needs, generally carrying lower interest rates due to their unsecured nature and the high creditworthiness of the issuing company. Maturities usually range from 7 to 270 days. Companies often issue CPs at a discount to their face value, with the difference representing the investor’s return.

Recent Financial Performance of APL Apollo Tubes Ltd

APL Apollo Tubes Ltd has demonstrated strong financial performance recently. For the fiscal year ended March 31, 2025 (FY25), the company reported:

• Sales volume: Increased by 21% year-on-year (YoY) to 3,157,978 tonnes.
• Revenue: Increased by 14% YoY to ₹206.9 billion.
• Net Profit: Increased by 3% YoY to ₹7.6 billion.

In Q4 FY25 alone, the company achieved its highest-ever quarterly sales volume, revenue, EBITDA, and net profit. Sales volume for Q4 FY25 was 850,447 tonnes (up 25% YoY and 3% quarter-on-quarter), and net profit surged by 72% YoY to ₹2.9 billion.

These strong financial results and a high credit rating of [ICRA] A1+ position APL Apollo Tubes Ltd favourably in the short-term debt market, enabling them to secure competitive yields for their Commercial Paper issuances.

Regulatory Disclosure

The issuance adheres to the disclosure norms stipulated under Regulation 30 of SEBI (LODR) Regulations, 2015, ensuring timely and accurate communication of material events to all stakeholders.

Share Price Performance

As of 3:15 PM, the shares of APL Apollo were trading at ₹1,734.30, up by 0.97% or ₹16.70.

What’s Next?

APL Apollo’s ₹400 crore Commercial Paper issuance at competitive yields signals strong liquidity management and market confidence in its credit profile. Backed by robust FY25 performance—record sales volume, revenue, and profit—the company is well-capitalised to fund near-term working capital efficiently. Looking ahead, sustained demand in construction and infrastructure, product diversification into value-added steel tubes, and strategic capacity expansion are expected to drive growth. Watch for margin performance, raw material cost trends, and broader capex plans as key triggers for future stock momentum.

About the Company

APL Apollo Tubes Ltd is India’s leading structural steel tube manufacturer, listed on both NSE and BSE. With a pan-India manufacturing presence and a robust distribution network, the company is a key supplier to sectors such as infrastructure, construction, automotive, and engineering.

REF:https://nsearchives.nseindia.com/corporate/APLAPOLLO_07072025144938_SEIntimation.pdf

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