Metro Tyres Plans 1 billion-rupees IPO

Metro Tyres plans to hit the capital market with an initial public offering that could raise up to a billion rupees. Sources reported in local newspapers said the company has planned to increase production at its four production facilities in Ludhiana and increase the production of its Metro Continental tyres from 25,000 to 50,000 units per month. This could even reach as much as 100,000 units per month following 10 million rupees of investment. Rummy Chhabra, managing director of Metro Tyres, said that the company has four manufacturing plants in Ludhiana, one in Gurgaon and one in Noida. The company is planning to use the IPO money to build a new facility to manufacture motorcycle, scooter and three-wheeler tyres. The final decision of location of the facility will be taken shortly, the company said in a release.