JK Tyre gains on plan to raise Rs 240 crore

JK Tyre & Industries rose 1.31% to Rs 154.80 after the tyre maker said it will raise Rs 240 crore by issuing 24,000 compulsorily convertible debentures to International Finance Corporation (IFC).

The company on 20 February 2023, executed a subscription and policy rights agreement with IFC for issuing upto 24,000 compulsorily convertible debentures (carrying an interest at the rate of 6% per annum, compounded cumulatively on a quarterly basis) at the face value of Rs 1,00,000 each by way of a preferential issue on a private placement basis.

The debentures are convertible into equity shares of the company at Rs 180.50 each on or before the expiry of 18 months from the date of the allotment.

The company will seek shareholders approval in this connection at the extra-ordinary general meeting to be held on 6 March 2023.

JK Tyre & Industries is currently the market leader in truck bus radial segment. The company provides end-to-end solutions across segments of passenger vehicles, commercial vehicles, farming, off-the-road and two & three-wheelers.

The tyre maker's consolidated net profit rose 15.2% to Rs 65.59 crore on 17.5% increase in net sales to Rs 3,612.92 crore in Q3 FY23 over Q3 FY22.

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