Issues 10.8 cr CCPS ; announces Rs3 dividend
MUMBAI: Apollo Tyres’s board on Wednesday approved increasing the authorized share capital of the company from Rs75 crore to Rs1575 crore by the issue of 15 crore preference shares with a face value of Rs100 each.
The company also announced issuance of 10.80 crore compulsorily convertible preference shares (CCPS) with a face value of Rs100each. The board at Wednesday’s meeting recommended a dividend of Rs3 per equity share for the financial year 2019-2020.
The new Rs1575 crore authorized share capital will be now divided into equity shares of Rs75 crore of face value of Re 1 each and preference shares of 15 crore with a face value of Rs100 each.
The company said the change in the authorized share capital is subject to shareholder’s approval. The convertible preference shares issued will belong to ‘public category’ and is subject to approval of the shareholders. The company also said that CCPS will carry a dividend at the rate of 6.34 per cent per annum.
Apollo Tyres said also said that it will be convening an extraordinary general meeting (EGM) to obtain shareholders’ approval (by way of a special resolution) to ratify the preferential allotment.
Apollo Tyres has manufacturing facilities in India, the Netherlands and Hungary. The company markets its products under its two global brands – Apollo and Vredestein.