Apollo Tyres to raise capital for expansion

Apollo Tyres Ltd has announced that the Board of Directors of the Company at its meeting held on September 04, 2006, has considered and approved, subject to necessary approvals from members and others wherever required, the following:

1. Issue of securities to Qualified Institutional Buyers (QIB´s) upto an amount not exceeding Rs 250 crores in accordance with SEBI Guidelines on the subject.

2. Preferential Issue of 40 lac convertible Warrants to the Promoter Group in accordance with SEBI Guidelines on the subject.

3. Keeping in view the overall market conditions and in consultation with the Advisors to the Issue, the Board has decided not to proceed with the earlier plans of Rights-cum-Follow-on-Public offering as planned earlier.

Further the Company has informed that, the Board has decided to seek the approval of the members through Postal Ballot u/s 192 (A) of the Companies Act, 1956.

Source : Equity Bulls

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