Shares of Balkrishna Industries slipped 8 per cent to Rs 1,700 on the BSE in Tuesday's intra-day trade as investors booked profit after the company announced capital expenditure (capex) plan of up to Rs 1,900 crore, which will be funded by internal accruals and debt, if required.
The stock of auto tyres and rubber products has corrected 10 per cent from its record high level of Rs 1,885 touched in intra-day trade today. At 10:45 am, it was trading 7 per cent lower at Rs 1,719 as compared to a 0.41 per cent risen in the S&P BSE Sensex.
Looking at the overall increase in demand, the board at its meeting held on Tuesday, February 8, 2021, has approved a capex plan of Rs 1,900 crore, which include Brownfield project at Bhuj to increase tire capacity, increase carbon black capacity including advance carbon black and power plant at Bhuj and modernization, automation and technology upgradation capex at existing facilities.