Apollo Tyres on the highway

Apollo Tyres is on good roads today, with the stock opening higher at Rs.198.50, going on to an intra day high at Rs.203.65 and currently at Rs,200 levels, up almost 3%.

The stock is in the green after the company announced yesterday after market closure that it is looking at restructuring its South African business, aiming to cut short the losses. Apollo Tyres Africa Proprietary Limited, a wholly owned step subsidiary of the company in South Africa has voluntarily initiated Business Rescue Proceedings and has appointed a specialist to re-structure its operations and to secure best value for all stakeholders. The evaluation by such specialist will decide the future course of action for the company in South Africa.

This ‘rescue’ plan has been mooted as this unit is mired in labor trouble and unremunerative cost structure. It has appointed a specialist to help restructure the business and get best value for all involved.