Apollo Tyres announced on Wednesday that its board of directors approved an expansion of truck-bus radial capacity at the Chennai plant to 8,900 tyres per day, that is 48.33% hike from the present 6,000 tyres per day.

The board noted the improved demand outlook and the fact that the current Chennai project is generating returns ahead of projections.

The board also approved a further conversion of the company's Kalamassery plant, in the rubber producing southern Indian state of Kerala, from bias truck tyres to specialty/industrial tyres. 
 
The company estimates a capex of USD 340 million (Rs 20.50 billion) for these projects.
 
The company plans to raise funds to pursue these organic growth opportunities and for other corporate purposes. The board also authorised the company to raise funds, subject to approval from shareholders, through issue of securities to the extent of USD 200 million, it said.

The management has also taken an approval to increase the limit of investments by FIIs from 40% to 45% in the equity share capital of the company, it added. 

Shares of the company gained Rs 0.95, or 0.47%, to settle at Rs 204.25. The total volume of shares traded was 384,502 at the BSE (Wednesday).