JK Tyre raises Rs 200 crore via preferential issue of shares to promoter group

JK Tyre and Industries Wednesday said it has raised Rs 200 crore through issue of equity shares on preferential basis to its promoter group. At an extraordinary general meeting held on March 22, 2019, the shareholders had approved allotment of 1,94,17,400 equity shares of Rs 2 each at a premium of Rs 101 to the promoter group, the company said in a statement.

The preferential issue of equity has been made to part-finance ongoing expansion of the TBR (truck and bus radial tyre) capacity. This will no doubt improve the net worth of the company, JK Tyre and Industries Chairman and Managing Director Raghupati Singhania said.

JK Tyre continues to make strides in TBR market and capacity is being expanded to further strengthen its leadership in this growing segment, the company added.