In the opening bell session, APL ApolloTubes rose over 5% to hit a new 52-week high at Rs.1124.95 but is now in the red. On the other hand, Apollo Tricoat Tubes opened itself around 10.5% higher at Rs.1020, a new high; it remains firmly in the green, up 8% at Rs.997 levels.

The stocks reacted after their boards approved the merger of Shri Lakshmi Metal Udyog and Apollo Tricoat with APL Apollo.

As per the scheme of amalgamation, Apollo Tricoat’s minority shareholders will receive one equity share of APL Apollo for each equity share held in Apollo Tricoat – a premium of 16% over yesterday’s close for Tricoat shareholders.

This transaction is expected to close in Q3FY22 with the appointed date of merger being April 1, 2021. The amalgamation shall result in consolidation of the respective operations served by one platform thereby leveraging the capability of APL Apollo.

In case of Shri Lakshmi, its capital will stand automatically cancelled and there will be no issue and allotment of shares to APL Apollo or the nominees as APL Apollo and its nominees are the only shareholders of Shri Lakshmi.