Apollo Tyres jumps after RBI hikes foreign investment limit

Apollo Tyres rose 6.29% to Rs 209.40 at 11:39 IST on BSE after the central bank allowed foreign investors to buy up to 45% of the paid-up equity capital of the company.

Meanwhile, the BSE Sensex was down 130.59 points, or 0.49%, to 26,437.40.

On BSE, so far 5.45 lakh shares were traded in the counter, compared with an average volume of 6.11 lakh shares in the past one quarter.

The stock hit a high of Rs 209.80 and a low of Rs 197 so far during the day. The stock hit a record high of Rs 217.70 on 9 September 2014. The stock hit a 52-week low of Rs 63.05 on 21 October 2013.

The stock had outperformed the market over the past one month till 1 October 2014, rising 9.96% compared with 1.11% fall in the Sensex. The scrip had, however, underperformed the market in past one quarter, falling 3.10% as against Sensex's 4.12% rise.

The large-cap company has an equity capital of Rs 50.90 crore. Face value per share is Re 1.

The Reserve Bank of India (RBI) on 1 October 2014, notified that 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).

Apollo Tyres passed resolutions at the board of directors' level and a special resolution by the shareholders, agreeing for enhancing the limit from 40% to 45% for the purchase of its equity shares and convertible debentures by FIIs/RFPIs.

Apollo Tyres' consolidated net profit increased 37.4% to Rs 227.94 crore on 2.4% growth in total income to Rs 3276.53 crore in Q1 June 2014 over Q1 June 2013.

Apollo Tyres manufactures tyres and tubes for cars, trucks, farm equipment and light commercial vehicles. The company also manufactures automobile flaps and retreading materials.

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