Apollo Tyres hits new high

Since October 1, the stock rallied 13% after the RBI said foreign investors can buy up to 45% stake in tyre maker.

Apollo Tyres has moved higher by 4% to Rs 224, also its new high on National Stock Exchange (NSE), extending its past three day’s rally, after the Reserve Bank of India (RBI) said foreign investors can now buy up to 45% stake in the tyre manufacturer.

"Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs), through primary market and stock exchanges, can now purchase up to 45% of the paid-up capital of Apollo Tyres under the Portfolio Investment Scheme (PIS)," RBI said in a notification on October 1.

Since then, the stock rallied 13% from Rs 197, compared to 0.80% decline in CNX Nifty.

On July 2, the board of directors of the company had approved to increase in the limit of investments by FIIs from 40% to 45% in the equity share capital of the company.

Meanwhile, the FIIs had raised their holding in the Apollo Tyres to 36.78% in June quarter from 28.94% at the beginning of the current calendar year. The company yet to disclosed September shareholding pattern data.

Today, the stock opened at Rs 214 and touched a low of Rs 211 in early morning deals on NSE. Till 1015 hours, a combined 4.86 million shares changed hands on the counter so far on NSE and BSE.