Apollo Tyres is planning to raise up to Rs 1,500 crore through placement of equity shares to qualified institutions to meet the needs of its growing business and is seeking nod of shareholders for the same.
In a notice to shareholders, the company said it “proposes to raise additional capital to meet the needs of its growing business”.
“Accordingly, it is proposed that equity or equity-linked debt capital raising be undertaken by the company pursuant to a Qualified Institutions Placement (QIP), which would involve creating, offering, issuing and allotting securities to Qualified Institutional Buyers (QIBs),” it said.
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The company further said it intended to issue securities for an aggregate amount not exceeding Rs 1,500 crore in one or more tranches.
It said through a special resolution it is seeking approval from the shareholders to enable the board of directors to undertake a QIP without the need for fresh approval from the members.
Last year in August, the company had announced that it would invest Rs 3,000 crore to double the capacity of its truck and bus radial tyres.
Apollo Tyres has been undertaking expansion of its Chennai facility to increase the truck-bus radial capacity from 6,000 tyres per day to 12,000 tyres per day.
Besides, in April it will start operations at new plant in Hungary, its first greenfield facility outside India.