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27. May 2006

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

Source: Daily "The Hindu Business Line", New Delhi; 27 May 2006

New Delhi , May 26
Apollo Tyres Ltd (ATL) is to come up with a rights
issue of equity shares, followed by a Rs 2000 million
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.


(Syed Rashid Ali, Karachi, Pakistan)

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