New Delhi: Apollo Tyres' plan to raise about Rs 1,725 crore via issue of securities was on Thursday approved by its shareholders.
In its annual general meeting (AGM) held on Thursday, shareholders have approved raising of funds up to $200 million (Rs 1,225 crore approximately) through issue of securities and up to Rs 500 crore through placement of non-convertible debentures, the company said in a filing to the BSE.
Shareholders have also approved raising of foreign institutional investment (FII) limit in the company to 45 per cent from 40 per cent earlier.
Meanwhile, Apollo Tyres on Wednesday said it will invest 500 million euros (about 4,100 crore) on its proposed greenfield facility in Eastern Europe. The facility, first for Apollo outside the country, will be commissioned in 2017-18, vice chairman and managing director Neeraj Kanwar told reporters.
"Where exactly the plant was to come up had not yet been decided. We are still negotiating with Eastern European countries. This is the first time Apollo is looking at greenfield facility outside India."
"The investment will be around 500 million euro," he added.
The plant will have a per annum manufacturing capacity of 5.5 million units of passenger car tyres and 6.75 lakh units of heavy commercial vehicle tyres.
In India, Apollo has its largest facility in Limda in Gujarat, two plants in the rubber producing Kerala and the latest next generation plant is near Chennai in Tamil Nadu.
The company will also be investing Rs 1,500 crore in its plant at Chennai, where the capacity would be enhanced from 6,000 units per day to 9,000 units.
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