Apollo Tyres Shares Trade At New 52-Week High After Tyremaker Gets Relief From Supreme Court

The share price of mid-cap stock Apollo Tyres traded at a new 52-week high of Rs 451.15 per share in the intraday trading on Monday. Shares of Apollo Tyres were trading 0.90% higher at Rs 446.30 per share at 12:41 pm IST today. At this price, the tyremaker has a market capitalization of Rs 28,344.56 crore.

Before this, Apollo Tyres shares traded at a new 52 52-week high value of Rs 445.75 on December 1, 2023.
The positive movement in the company's share price was seen as the tyre maker heaved a sigh of relief after the Supreme Court on Monday rejected the appeal filed by the Securities and Exchange Board of India (SEBI), against the Securities Appellate Tribunal (SAT) order to dismiss a Rs 65 lakh penalty imposed on Apollo Tyres for breaking buyback of shares norms in 2003.

The SC bench, headed by Justice Sanjiv Khanna, criticized the market regulator for challenging every order of the SAT that was not in their favor. Justice Khanna asked SEBI to file a list of appeals they have filed in the top court against SAT's orders.

In addition, Justice Khanna has sought an affidavit from the officer in charge of the case explaining the significant delay in taking action against Apollo Tyres, as SEBI passed the order in 2018, almost 15 years after the alleged violation.

In September this year, the SAT while rejecting SEBI's appeal, asked the regulator to refund the penalty amount deposited by Apollo Tyres within four weeks. The appeal was filed against Sebi's order passed in November 2018 that imposed a penalty of Rs 65 lakh on Apollo Tyres for violation of buyback rules.

It was alleged that 36.90 lakh Apollo Tyres shares were repurchased by the company and its promoters in violation of the relevant section of the Companies Act and Sebi regulations. The company allegedly committed the violations in 2003. Sebi maintained that Apollo Tyres did not follow any of the methods for buying back its shares as specified under the buyback regulation. Under Regulation 4(1) of buyback, a company can buy back shares via a tender offer, open market through book building process through the stock exchange, and from odd-lot holders.

Apollo Tyres Stock Price Performance:

The stock has a 52-week high and 52-week low of Rs 451.15 and Rs 302.05 respectively. In the last one year, the stock has gained 40%. The last 2-year and 3-year returns delivered by the shares of Apollo Tyres stand at 112.76% and 137.41% respectively.