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Apollo Tyres has dipped 9% to Rs 62.70, its lowest level since January 2012, extending its previous day’s over 20% fall on the Bombay Stock Exchange (BSE) on worries over debt burden post the buyout of US-based Cooper Tire & Rubber.
The stock of auto tyres and rubber products maker has tanked 32% in last two trading sessions after the company has acquired US-based Cooper Tire & Rubber for Rs 14,500 crore, raising the concerns that the all-cash deal would weigh heavily on the company’s balance sheet.
“This deal, in our view, will remain as an overhang on the stock due to huge debt involved in the acquisition and the size of the deal,” says analyst at Nirmal Bang Equities.
A combined 54.21 million shares representing 19% of free-float equity of Apllo Tyres have changed hands on the counter till 1420 hours on BSE and NSE.
The stock of auto tyres and rubber products maker has tanked 32% in last two trading sessions after the company has acquired US-based Cooper Tire & Rubber for Rs 14,500 crore, raising the concerns that the all-cash deal would weigh heavily on the company’s balance sheet.
“This deal, in our view, will remain as an overhang on the stock due to huge debt involved in the acquisition and the size of the deal,” says analyst at Nirmal Bang Equities.
A combined 54.21 million shares representing 19% of free-float equity of Apllo Tyres have changed hands on the counter till 1420 hours on BSE and NSE.
