New Delhi: Apollo Tyres on Monday said its board of directors has approved raising of USD 150 million (Rs 800 crore) through placement of shares to qualified institutional buyers (QIBs).

In a filing to the BSE, the company said the board also approved increasing the investment limit of foreign institutional investors to 40 percent from 30 percent of the paid up capital.

"The board has decided to seek approval of members through postal ballot (for the fund raising programme and increasing FII limit)," the filing said.
When contacted, the company declined to comment on where the fund to be raised through QIB placement would be utilised.

It is, however, understood that Apollo Tyres may use the fund to support its growth strategy and expansion in India and abroad.

In August, the company had announced that it would invest Rs 300 crore at its Kalamassery unit in Kerala in the next two years and make it an export unit for industrial tyres.

Moreover, the company is also in the process of identifying greenfield projects in Eastern Europe to expand further in the continent.

Shares of Apollo Tyres on Monday closed at Rs 92.15 per scrip on the BSE, down 0.32 percent from the previous close.

(Agencies)

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