Apollo Tyres may raise up to $311M in debt to finance capex plans

Apollo Tyres today said the company's board has given nod to raise funds of about Rs 2,000 crores towards meeting capital expenditure plans which include ramping up of two plants in South.

"In order to meet capex requirements towards ongoing expansions at Chennai and Kalamassery (Kerala) plants, the Board approved authorisation for raising debt of Rs 2,000 crore by way of Rupee Term Loan, Foreign Currency Term Loan, NCDs, from time to time," Apollo Tyres said in a BSE filing.

The company was seeking authorisation of shareholders through postal ballot for private placement of unsecured NCDs not exceeding Rs 1,000 crore within overall borrowing limits of the company for the capital expenditure requirements, it said.

The company said it plans to ramp up the Chennai plant involving capital expenditure of Rs 1,200 crore.

The plant manufactures truck and bus radial tyre, and with the expansion plans its capacity would increase from 8,900 tyres per day to 12,000 tyres per day.

Meanwhile, the company announced appointment of Sunam Sarkar as "Non Executive Independent Director" and former Chief of Army Staff, General Bikram Singh as "Additional Director (Independent)", with immediate effect.

Shares of the company were trading at Rs 182.55 piece down 12.66 per cent over previous close in BSE.

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