Birla Tyres hits 5% upper circuit as Co to consider fundraising this week

Shares of Birla Tyres hit a 5 per cent upper circuit band of Rs 23.35 apiece on the BSE on Wednesday after the company said its board will meet later this week to consider raising up to Rs 1,100 crore.

The company's board will meet on August 28 (Friday) to consider capital raising options for an amount aggregating up to Rs 1,100 crore by way of equity or debt instruments, including non-convertible debentures, among others, Birla Tyres said. READ MORE

The Kolkata-based firm, which caters to two-wheelers, three-wheelers and commercial vehicles, however, did not share reasons for raising capital.

Birla Tyres shares had hit an all-time high of Rs 58 on July 3, 2020. 

Other tyre companies, too, were trading in the green. For instance, JK Tyre & Industries was ruling around 4 per cent higher at Rs 62.40 on the BSE while Apollo Tyres was up 1 per cent at Rs 127.9. Balkrishna Industries was up over 1 per cent while Goodyear India was trading nearly 0.5 per cent higher at Rs 956.95. MRF, on the other hand, was trading flat at Rs 59,409. 

In comparison, the S&P BSE Sensex was trading at 38,815, down 0.08 per cent.