Date:27/05/2006 URL: http://www.thehindubusinessline.com/2006/05/27/stories/2006052703070200.htm

Back Apollo Tyres to come up with 1:6 rights, public issue

Our Bureau

New Delhi , May 26

Apollo Tyres Ltd (ATL) is to come up with a rights issue of equity shares, followed by a Rs 200 crore public issue. Both the issuances would be at a premium to the Rs 10 face value of equity share of the company.

A committee of directors (fund raising) of ATL on Thursday approved proposals for coming out with a rights issue as well as a public issue.

For the rights issue, one rights equity share would be issued for every six equity shares held as on the record date. Moreover, for every four equity shares allotted on a rights basis under the rights issue, the allottee would receive one warrant. The warrant holder would be entitled to apply for one equity share of Rs 10 each for cash at a premium, at warrant exercise price, for each warrant held, at any time during the warrant exercise period.

A communiqué from the company to the stock exchanges said that the issue price of the equity shares to be issued under the rights issue and the exercise price/terms of warrant would be decided closer to the record date.

As far as the public issue was concerned, the issue price would be decided closer to the public issue date.