Apollo Tyres jump after raising Rs 500 crore via NCDs

The shares of world’s seventh largest tyre manufacturer, Apollo Tyres Ltd jumped nearly eight per cent on April 9, after the company announced that it has raised Rs 500 crore through NCDs.

In a regulatory filing made on Thursday during market hours, the company informed that the present issue is for the allotment of 5,000 non-convertible debentures (NCDs) of face value of Rs 10,00,000 each, aggregating to Rs 500 crore.

Adding to this, the company said that the date of allotment is April 8, 2020 and the interest rate is 8.75 per cent per annum. It also said that the penal interest for the delay of payment is pegged at two per cent per annum. However, the company did not disclose to whom the private placement of NCDs has been made.  

Apollo Tyres Limited (ATL) is primarily engaged in the manufacturing and sale of tyres with its product portfolio comprising of tyres, tubes and flaps. It markets its products under two brands, Apollo and Vredestein.

At the time of market closing on Thursday, the stock of Apollo Tyres was trading at Rs 89.75, up by 7.61 per cent against its previous close of Rs 83.40. Its 52-week high is Rs 221.15 while, its 52-week low is Rs 73.55 on BSE.