The board of directors of Apollo Tyres Ltd., at its meeting, approved an expansion of truck-bus radial capacity at the Chennai plant from the present 6,000 tires per day to 8,900 tires per day. The board noted the improved demand outlook and the fact that the current Chennai project is generating returns ahead of projections. The board also approved a further conversion of the company’s Kalamassery plant, in the rubber producing southern Indian state of Kerala, from bias truck tires to specialty/industrial tires. The company estimates a capex of $340 million (Rs 20,500 million) for these projects. The company plans to raise funds to pursue these organic growth opportunities and for other corporate purposes.

The board also authorized the company to raise funds, subject to approval from shareholders, through issue of securities to the extent of $200 million, in one or more tranches, either by way of rights issue/preferential issue/private placement(s)/QIP/public issue of equity shares at par or premium, convertible or non-convertible debentures with warrants and/or by way of issue of FCCBs and/or such other instruments and on such terms and conditions as may be decided by the board. The management has also taken an approval to increase the limit of investments by FIIs from 40 percent to 45 percent in the equity share capital of the company.

Source: rubberworld.com