The promoters of JK Tyre and Industries have decided to increase their stake in the company by 5% to 52.34%, subscribing to a little over 4.3 crore shares on a preferential basis, the company said in a filing to the stock exchanges on Friday.
The decision towards this was taken at a board meeting held in Chennai on Thursday to announce Q2 results.
The company on Friday informed the stock exchanges that the board of directors approved an issue of equity shares/convertible securities at a price to be determined in accordance with SEBI (Issue of Capital and Disclosure Requirements) Regulations to the promoter/promoter group.
Consequent to the preferential issue as above, the paid-up equity share capital of the company will be increased from R41,05,93,460, comprising 4,10,59,346 equity shares of R10 each to R45,36,26,960 comprising 4,53,62,696 equity shares of R10 each.
JK Tyres chairman and managing director Raghupathi Singhania had on Thursday said that the expansion in Chennai plant will be funded through debt, internal accruals and equity participation.
