APL Apollo approves ₹8.50 dividend, rejects SAR scheme extension
- Shareholders approved a final dividend of ₹8.50 per share for FY26
- Nine of ten resolutions passed, including director reappointments
- Extension of Stock Appreciation Rights Scheme to associates was rejected
- Institutional investors opposed the SAR scheme, causing it to fail at 72.26%
- Total voting participation stood at 86.47% of outstanding shares
*this image is generated using AI for illustrative purposes only.
APL Apollo Tubes shareholders approved a final dividend of ₹8.50 per equity share for FY26 during the 41st Annual General Meeting held on September 15, 2026. However, investors rejected a special resolution to extend the company’s Stock Appreciation Rights Scheme to employees of associate companies.
The meeting, conducted via video conferencing, saw nine of the ten resolutions pass. Voting participation was high, with 86.47% of outstanding shares polled across resolutions, reflecting strong engagement from both promoter and public shareholders.
Resolution Outcomes
Shareholders unanimously backed the adoption of audited financial statements and the declaration of the dividend. The dividend resolution received 99.99% affirmative votes, with only 119 votes cast against it out of over 240 million polled.
Director reappointments also secured majority support, though some faced notable dissent from institutional investors:
| Resolution | Description | Votes For (%) | Votes Against (%) |
|---|---|---|---|
| Item 3 | Reappointment of Ashok Kumar Gupta | 94.30% | 5.70% |
| Item 4 | Reappointment of Rahul Gupta | 96.14% | 3.86% |
| Item 6 | Reappointment of Asha Anil Agarwal | 98.50% | 1.50% |
| Item 7 | Reappointment of H.S.K. Upendra Kamath | 95.55% | 4.45% |
| Item 8 | Reappointment of Rajeev Anand | 99.02% | 0.98% |
| Item 9 | Reappointment of Dinesh Kumar Mittal | 94.83% | 5.17% |
The remuneration of cost auditors M/s Sanjay Gupta & Associates was ratified with near-unanimous support (99.99% in favor).
Failed Resolution: SAR Scheme Extension
The sole defeated resolution concerned the extension of benefits under the APL Apollo Tubes Limited Stock Appreciation Rights Scheme, 2019, to employees of associate companies. This special resolution required a 75% majority to pass but received only 72.26% affirmative votes.
The rejection was driven primarily by institutional investors. While promoters voted unanimously in favor and non-institutional public shareholders supported the measure (99.96%), institutional investors voted against it by a margin of 48.06% to 51.94%. This split highlights divergent views on equity dilution and compensation structures within the group.
Historical Stock Returns for APL Apollo Tubes
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.67% | -3.66% | +1.04% | +8.89% | +23.78% | +126.45% |
How might the institutional investors' rejection of the SAR scheme extension signal broader concerns about equity dilution or governance standards for APL Apollo Tubes?
Will management propose a revised compensation structure for associate company employees that addresses institutional concerns while maintaining retention goals?
Does the high voting participation rate of 86.47% indicate a shift in shareholder activism, and could this lead to increased scrutiny on future board reappointments?
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