Apollo Tyres Ltd is looking to raise up to Rs 1,200 crore ($200 million) through a mix of equity issues and non-convertible debentures in one or more tranches, as per a stock market disclosure.
Of this it aims to raise as much as Rs 500 crore ($83 million) through non-convertible debentures or NCDs and the rest through a securities issue which could be by way of rights issue/preferential issue/private placement(s)/QIP/public issue of equity shares, warrants or FCCB, the company said on Wednesday.
The company has also approved Rs 2,050 crore capex for expansion of truck-bus radial capacity at the Chennai plant from 6,000 tyres per day currently to 8,900 tyres per day and conversion of its leased operations at Kalamassery plant from bias truck tyres to specialty/industrial tyres.
These developments come after a mega $2.5 billion deal to acquire US-based Cooper Tire came unstuck. The deal, which could have created the world’s seventh-largest tyre maker, was doomed as Apollo Tyres sought cut in original deal price in light of labour union troubles in the US and threat of the Chinese venture splitting up.
Last year, Apollo Tyres sold its Durban-based unit Apollo Tyres South Africa Pty Ltd (ATSA) for $60 million (Rs 335 crore) to Sumitomo Rubber Industries Ltd.
Shares of Apollo Tyres closed at Rs 204.25 each, up 0.47 per cent on BSE in a strong Mumbai market on Wednesday.
(Edited by Joby Puthuparampil Johnson)