TVS Sricharka surges 32% in 4 days after announcing Rs 1,000 cr capex plan

The company said it is not a party to memorandum of family arrangement executed on December 10, 2020 between members of the TVS Family in order to record the terms of the family arrangement.

Shares of TVS Srichakra continued to rally on Friday. The stock hit a fresh 52-week high of Rs 2,130, up 20 per cent on the BSE in intra-day trade. The stock of the auto tyres and rubber products company surged 32 per cent in past four trading days after the company on Tuesday announced its capital expenditure plan of Rs 1,000 crore to ramp up manufacturing in its Madurai and Pantnagar plants.

The company, a leading Indian manufacturer of 2 and 3 wheeler and off-highway tyres, said the investment is planned to be made over a three-year period. "The investment, when fully made, will result in an increase in 2 & 3 wheeler tyre capacity by 25-30 per cent and doubling of off-highway tyre capacity from current levels. The investment is planned to be funded by a mix of debt and internal accruals," it said.

The expansion program being undertaken will focus on setting up additional capacities in this space to cater to growing demand across its customer base - both domestically and globally. Included in this investment, is a plan to enhance capacities in the company's pioneering range of radial tyres and other premium products.

The management believes that the capital outlay will enable TVS Eurogrip to further its growth aspirations and help strengthen its partnerships with vehicle manufacturers and create new benchmarks in the replacement and global markets

Meanwhile, TVS Srichakra in a regulatory filing said the company is not a party to the memorandum of family arrangement executed on December 10, 2020, between members of the TVS Family in order to record the terms of the family arrangement.

Therefore, the company said it does not expect this arrangement to affect the management and functioning of the company in any way, and expect to continue business in the ordinary course as without impacting any of the stakeholders, it said.

The $8.5-billion TVS group on Thursday decided to go for restructuring by giving each family group complete ownership of businesses they manage and scrapping the holding company. There won't be any cross holdings, the family has agreed, according to the new terms.