Apollo Tyres shares up over 3 per cent on bourses

MUMBAI: Apollo Tyres' scrip today rose by over 3 per cent as its board has approved a proposal to invest US $340 million (around Rs 2,025 crore) to upgrade its manufacturing facilities at Chennai and Kalamassery (Kerala).

Shares of the company ended at Rs 211.10, up 3.35 per cent on the BSE. During the day, the scrip gained 4.62 per cent to Rs 213.70 -- its 52-week high. At the NSE, the stock was up 3.57 per cent to Rs 211.70. Besides, the company's board also gave its nod to seek shareholders' approval to raise US $200 million (around Rs 1,191 crore) via issue of securities to pursue organic growth opportunities and for other corporate purposes, Apollo Tyres Ltd had said yesterday.

The board approved expansion of the truck and bus radial tyre capacity at the company's Chennai plant from the present 6,000 tyres per day to 8,900 tyres per day. "The board noted the improved demand outlook and the fact that the current Chennai project is generating returns ahead of projections," it had said. The board also approved conversion of the company's leased operations at Kalamassery plant from bias truck tyres to speciality, industrial tyres.