Birla Tyres stock rises 5% as firm plans to raise Rs 1,100 crore

Birla Tyres share hit upper circuit of 5% in early trade today after the firm said its board would meet on August 28 (Friday) to consider capital raising option.  The tyre manufacturer plans to raise an amount aggregating up to Rs 1,100 crore by way of equity or debt instruments, including non-convertible debentures, among others.

Buoyed by the fund raising plan, share price of Birla Tyres rose up to 4.94% to Rs 23.35 intra day on BSE. The share opened with a gain of 4.49% at Rs 23.25 against previous close of Rs 22.25.

In a month, the share has lost 14%. Total 0.22 lakh shares changed hands amounting to turnover of Rs 5.19 lakh on BSE.

The stock has gained after 2 days of consecutive fall. There were only buyers and no sellers for the stock in early trade.

The share trades higher than 5 day, 100 day and 200 day moving averages but lower than 20 day and 50 day moving averages.

Market cap of the firm rose to Rs 332.95 crore.

The company's board will meet on August 28 (Friday) to consider capital raising options for an amount aggregating up to Rs 1,100 crore by way of equity or debt instruments, including non-convertible debentures, among others, Birla Tyres said.

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Post approval from the board, the shareholder approval, if required, will be sought, it added.

Kolkata-based Birla Tyres, which caters to two-wheelers, three-wheelers and commercial vehicles, however, did not share reasons for raising capital.

Meanwhile, Sensex and Nifty were trading flat in afternoon session after rising in early trade. Erasing early gains, Sensex was trading 34 points lower at 38,809. The Nifty 50 index, on the other hand, gained mere 1 point to 11,474.

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