JK Tyre raises 5 billion rupees

JK Tyre & Industries Limited has successfully concluded a 5-billion-rupee (£47.474 million; 55 million euros; US$60.125 million) Qualified Institutional Placement (QIP). The QIP was priced at 345 rupees per share (including a premium of 343 per share with face value of 2 rupees per share). According JK Tyre, the QIP received an “overwhelming response” from “marquee investors including Indian mutual funds, insurance companies and foreign institutional investors”.

Dr Raghupati Singhania, chairman and managing director, JK Tyre said: “We are pleased to have successfully completed QIP of 500 rupees crore. This is an important milestone in our corporate journey. Participation of several reputed investors in the issue endorses their faith and confidence in the Company’s growth story. QIP funds will be used for the purpose of growth capex and strengthening of the balance sheet”.

In recent times, JK Tyre has secured ESG-2 grading for a second consecutive year in ESG performance from CareEdge. The company has 12 globally-benchmarked ‘sustainable’ manufacturing facilities, including 9 in India and 3 in Mexico – that collectively has manufacturing capacity of around 34 million tyres annually with a strong network of over 6000 dealers and 700 dedicated brand shops called as Truck Wheels, Steel Wheels and Xpress Wheels.