Apollo Tyres rose 3.65% to Rs 211.70 at 15:11 IST on BSE after the company said its board approved upgrading manufacturing facilities at Chennai and Kerala.
The company made the announcement after market hours on Wednesday, 2 July 2014.
Meanwhile, the BSE Sensex was down 17.01 points, or 0.07%, to 25,824.20.
On BSE, so far 2.07 lakh shares were traded in the counter, compared with an average volume of 5.55 lakh shares in the past one quarter.
The stock hit a high of Rs 213.70 so far during the day, which is also a record high for the counter. The stock hit a low of Rs 206.55 so far during the day. The stock hit a 52-week low of Rs 58.55 on 3 July 2013.
The stock had outperformed the market over the past one month till 2 July 2014, rising 13.60% compared with 4.68% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 25.54% as against Sensex's 14.59% rise.
The large-cap company has an equity capital of Rs 50.40 crore. Face value per share is Re 1.
The board of Apollo Tyres approved expansion of the truck and bus radial tyre capacity at the company's Chennai plant from the present 6000 tyres per day to 8900 tyres per day and conversion of the company's leased operations at Kalamassery plant in Kerala from bias truck tyres to speciality/industrial tyres involving capital expenditure of $340 million.
To pursue the organic growth opportunities and for other corporate purposes, the board approved raising upto $200 million, in one or more tranches. It will be done either by way of rights issue/ preferential issue/ private placement (s)/ qualified institutional placements/ public issue of equity shares at par or premium, convertible or non-convertible debentures with warrants and/or by way of issue of foreign currency convertible bonds and/or such other instruments and on such terms and conditions as may be decided by the board.
The board also approved private placement of unsecured/secured non convertible debentures not exceeding Rs 500 crore within overall borrowing limits of the company.
Besides, the board also approved a proposal to increase the limit of investments by foreign institutional investors (FIIs) from 40% to 45% in the equity share capital of the company.
Apollo Tyres consolidated net profit jumped 98.62% to Rs 281.62 crore on 5.7% growth in net sales to Rs 3211.82 crore in Q4 March 2014 over Q4 March 2013.
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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