Apollo Tyres on Wednesday announced that its board approved increasing the authorized share capital of the company from Rs 75 crore to Rs 1575 crore.
The new Rs 1575 crore authorized share capital will be divided into equity shares of Rs 75 crore of face value of Re 1 each and preference shares of 15 crore with a face value of Rs 100 each. The company said the alteration in the authorized share capital is subject to shareholder's approval.The company also announced issuance of 10.80 crore compulsorily convertible preference shares (CCPS) with a face value of Rs 100 each. These convertible preference shares will belong to 'public category' and is subject to approval of the shareholders. The CCPS will carry a dividend at the rate of 6.34% per annum.
The company also said that it will be convening an extraordinary general meeting to obtain shareholders' approval (by way of a special resolution) in relation to the preferential allotment.
Further, the company also declared a dividend of Rs 3 per equity share for the Financial Year 2019-2020.
Apollo Tyres is an international tyre major with manufacturing units in India, the Netherlands and Hungary. The company markets its products under its two global brands - Apollo and Vredestein.
Shares of Apollo Tyres were down 3.14% at Rs 149.55.
Meanwhile, the S&P BSE Sensex was down 369.72 points or 0.92% at 39,911.48.
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