Leading Indian tyre manufacturer Apollo Tyres has raised $229 million (Rs 1,500 crore) through equity share issuance to Qualified Institutional Buyers (QIB). The fund will be used for future growth plans and to augment the company’s capital base and financial position.
The Committee of Directors (Funds Raising) of Apollo Tyres declared the company allotted 63,025,210 equity shares to QIBs at Rs 238 per equity share for raising the fund. The QIP was managed by JM Financial, Kotak and UBS.
The tyre maker has been quite aggressive in its growth plan in CY 2017. Kochi, Onkar S Kanwar, chairman, MD and CEO, Apollo Tyres, announced new capital infusion in FY2018 towards the expansion of manfacturing capacity at its existing manufacturing facilities in the country. Also, it launched its two-wheeler tyres in Sri Lanka making the company a full player in the segment. Along with starting its first Greenfield facility outside India when it inaugurated its new Hungarian plant.