Apollo Tyres has slipped 11% to Rs 54.60, its lowest value since March 2011, in late noon deals on the Bombay Stock Exchange. The stock opened at Rs 61.20 and has seen a combined 12.94 million shares changing hands on the counter till 1447 hours on BSE and NSE.
Apollo Tyres, India's second-largest automotive tyre manufacturer, has lost 41% from Rs 92 in past seven trading sessions after it announced a Rs 14,500 crore acquisition of US-based Cooper Tire & Rubber on June 12.
Most of the analysts have downgraded the stocks on debt concern as the all-cash deal would weigh heavily on the company’s balance sheet.
According to the Management, post the consolidation, the consolidated net debt equity ratio is expected to jump sharply to around 2 times from 0.6 times currently.
Apollo Tyres, India's second-largest automotive tyre manufacturer, has lost 41% from Rs 92 in past seven trading sessions after it announced a Rs 14,500 crore acquisition of US-based Cooper Tire & Rubber on June 12.
Most of the analysts have downgraded the stocks on debt concern as the all-cash deal would weigh heavily on the company’s balance sheet.
According to the Management, post the consolidation, the consolidated net debt equity ratio is expected to jump sharply to around 2 times from 0.6 times currently.
