JK Tyre raises €55m to strengthen capex, financial position

New Delhi – JK Tyre & Industries Ltd has delivered a fund-raising plan worth INR5 billion (€55 million) by way of a 'qualified institutional placement' (QIP).

Customary in India, a QIP allows a listed company to raise working capital without having to submit legal paperwork to market regulators.

In a 1 Jan statement, JK Tyre said the QIP was priced at INR345 per share (including a premium of INR343 per share with face value of INR2 per share).

The QIP,  it reported, “received overwhelming response from marquee investors including Indian mutual funds, insurance companies and foreign institutional investors.”

“Participation of several reputed investors in the issue endorses their faith and confidence in the company’s growth story,” said Dr Raghupati Singhania, JK Tyre chairman and managing director.

The Indian tire manufacturer said it intended to use the QIP funds for the purposes of growth capex and strengthening its balance sheet.