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Apollo Tyres gains on board's nod to sell part of South African operations

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Capital Market
Last Updated : May 30 2013 | 12:31 PM IST

The announcement was made after market hours on Wednesday, 29 May 2013.

Meanwhile, the S&P BSE Sensex was up 2.43 points or 0.01% at 20,150.07.

On BSE, 82,000 shares were traded in the counter as against average daily volume of 2.24 lakh shares in the past one quarter.

The stock hit a high of Rs 92.35 and a low of Rs 90.70 so far during the day. The stock had hit a record high of Rs 102.45 on 14 September 2012. The stock had hit a 52-week low of Rs 73.80 on 20 June 2012.

The stock underperformed the market over the past one month till 29 May 2013, sliding 5.1% compared with the Sensex's 3.92% rise. The scrip had, however, outperformed the market in past one quarter, surging 8.86% as against Sensex's 6.82% gain.

The mid-cap company has equity capital of Rs 50.40 crore. Face value per share is Re 1.

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The board of directors of Apollo Tyres on Wednesday, 29 May 2013, gave its approval to the management to proceed with requisite approvals and compliances on a transaction with Sumitomo Rubber Industries (SRI) by which SRI may take over Apollo Tyres South Africa (ATSA), including the Ladysmith Tyre plant and Dunlop brand rights in Africa at a consideration of $60 million. Apollo Tyres will retain the Durban plant through the Holding Company of ATSA, which manufactures truck and bus radial tyres and off highway tyres. Apllo Tyres said that the company will be able to disclose further information only after certain conditions have been met and certain approvals, including regulatory and statutory approvals, are granted, wherever required. The closing of transaction is likely to take place in next 4 months, the company said.

Apollo Tyres' consolidated net profit declined 9.7% to Rs 141.78 crore on 6% drop in net sales to Rs 3037.76 crore in Q4 March 2013 over Q4 March 2012.

Apollo Tyres manufactures tyres and tubes for cars, trucks, farm equipment and light commercial vehicles. The company also manufactures automobile flaps and retreading materials.

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First Published: May 30 2013 | 11:58 AM IST

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