Millennium Post

Apollo Tyres slumps 26% on debt concerns

Shares of Apollo Tyres on Thursday fell sharply by 26 per cent on concerns over debt burden due to the company's acquisition of US-based Cooper Tire & Rubber Co for about Rs 14,500 crore ($2.5 billion).

The stock fell to 52-week low of Rs 67.75, down by 26.35 per cent on BSE during the day. It settled at Rs 68.60, showing sharp loss of 25.43 per cent over previous close. At the National Stock Exchange, the stock nosedived by 26.05 per cent to close at Rs 68. Tracking weakness in the stock, the market value of the company tanked by Rs 903 crore to Rs 3,734 crore.

'We are concerned about the huge debt burden which could strain the balance sheet of the combined entity,' said Surjit Arora, Research Analyst (Institutional Equities) at Prabhudas Lilladher.
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