Alpha Ideas

Apollo is one of the largest alternate asset managers in the world with over 113 Billion $ under management.

In late 2009, they invested around 100 Million $ in Dish TV India.The deal was structured as follows:

• DishTV agreed to issue 117,035,000 new equity shares of Re. 1 each @ Rs.39.8 per share
• These shares were in the form of 117,035 Global Depositary Receipts (“GDRs”), at a price of US$ 854.5 per GDR (with each GDR representing 1,000 equity shares of Re 1.(works out to  1 USD=46.57 INR)

The good folks at Apollo even get a board seat at Dish TV so that they can keep a close eye on their investment.

Today, there is news release that Apollo plans to sell off its stake .

Now the current price of Dish TV (todays close) is Rs.66.25.Assuming the conversion rate to be 54.11, each GDR works out to be around 1224 $. They may be able to get a premium over the prevailing market price as well.

Not a bad $ return for around 3.5 years of work.

Now only if Apollo’s investment in Welspun Corp gave a similar kind of returns !