Apollo Tyres shares climb nearly 8 pc after fundraising

Shares of Apollo Tyres on Thursday zoomed by nearly 8 per cent after the company said it has raised Rs 500 crore via allotment of non-convertible debentures (NCDs).

Shares of the company soared 7.61 per cent to close at Rs 89.75 on the BSE. During the day, it jumped 8.99 per cent to Rs 90.90.

On the NSE, it rose sharply by 7.31 per cent to settle at Rs 89.50.

In terms of traded volume, 4.20 lakh shares were traded on the BSE and over 81 lakh on the NSE.

The present issue is for allotment of 5,000 NCDs of face value of Rs 10,00,000 each aggregating to Rs 500 crore, Apollo Tyres said in a regulatory filing.

The date of allotment is April 9, 2020, while the same for maturity is April 9, 2030 and the interest rate is at 8.75 per cent per annum, the company said, adding penal interest for delay of payment is pegged at 2 per cent per annum.

The company, however, did not disclose to whom the private placement of NCDs has been made.