APL Apollo Tubes Ltd has approved the divestment of its entire stake in its wholly owned subsidiary, Blue Ocean Projects Pvt Ltd (BOPPL), to SG Realtor Pvt Ltd, a related party, for an aggregate consideration of ₹160 crore, as the steel products manufacturer sharpens its focus on its core business.
The company’s board of directors has approved the proposal, and APL Apollo Tubes will enter into a share sale and purchase agreement with SG Realtor Pvt Ltd on or before December 31, 2026, according to a regulatory filing.
Blue Ocean Projects Pvt Ltd is currently a wholly owned subsidiary of APL Apollo Tubes. Following the completion of the transaction, the company will cease to be a subsidiary.
Related party transaction
The buyer, SG Realtor Pvt Ltd, is engaged in the real estate business. APL Apollo Tubes said the promoters of the company, along with their immediate relatives, hold more than 20% of the equity share capital of SG Realtor Pvt Ltd, making the transaction a related party transaction.
The company, however, said the deal is being executed on an arm’s length basis, with the sale consideration determined based on a valuation report obtained from an independent registered valuer.
“The transaction is a related party transaction and is being entered into at arm’s length, with the consideration determined based on the valuation report obtained from a reputed independent registered valuer,” the company said in its stock exchange disclosure.
Focus remains on core growth
The proposed divestment comes at a time when APL Apollo Tubes continues to strengthen its position in the structural steel tubes market.
During FY26, the company reported an 11% year-on-year growth in volumes, outperforming the overall industry growth. It attributed the performance to continued focus on product innovation and enhancing customer experience.
APL Apollo Tubes said it has also strengthened its long-term growth platform through expanded manufacturing capacity, a diversified product portfolio, an extensive distribution network and strong brand recognition.
The company believes these capabilities position it well to capitalise on future demand while reinforcing its leadership position in the industry.