Apollo Tyres on good roads

Apollo Tyres is on the good roads today. The stock, on the NSE is currently up over 4% at Rs.212.75, with an intra day high at Rs.217.20, a new 52-week high.  

The stock is in the limelight today on the back of the company announcing encouraging capex plans and increasing the FII limit to 45% from 40%. At the Board Meeting yesterday, the company announced expansion of the truck and bus radial tyre capacity at its Chennai plant from the present 6,000 tyres/day to 8,900 tyres/day. At a cost of Rs.2025 crore, the company plans to upgrade its manufacturing facilities at Chennai and Kerala.

The board also approved a proposal to increase the limit of investments by FIIs from 40% to 45% in the equity share capital of the company. Current FII holding in the company is at 34.50%.