Apollo Tyres is looking to raise about Rs 1,080 crore through the preferential share route. In board meeting on Wednesday, the company will approve an allotment of 10.8 crore compulsorily convertible preference shares (CCPS) to Emerald Sage Investment at Rs 171 per share. The 10.8 crore CCPS to be converted into 6.30 crore equity shares within 18 months.
Warburg Pincus is the parent company of Emerald Sage Investment.
Even for the stock per se, the numbers for this quarter have been on the positive side. Quarter on quarter (QoQ) basis revenues have gone up, their European business has turned around a bit and India business margins have picked up QoQ. This news of fund raising is also seen to be positive for the company.