Apollo Tyres defers rights, public issues

Apollo Tyres has deferred its rights issue of equity shares as well as its Rs 200 crore public issue owing to prevailing market conditions. The company was planning to raise Rs 450 crore, collectively from the issues.

This May, Apollo Tyres had announced a 1:6 rights issue. This means, one share would have been issued for every six equity shares held on the record date.

"Our share price was Rs 3,00 when we had planned both the issues. Now that our shares are priced at Rs 240, we will have to evaluate whether it is possible to raise that kind of equity from the market," said Sunam Sarkar, chief of corporate strategy and marketing.

He added that the company would now review the entire situation and then decide the future course of action.

Apollo Tyres wanted to raise Rs 450 crore for restructuring its debt and for financing its expansion. Sarkar said the expansion could entail possible acquisitions and an increase in production in existing facilities.

Sarkar said the company was unlikely to approach financial institutions to raise money, adding that that the company, at this point, was not considering debt as an option.