Apollo Tyres, one of the leading tyre manufacturers in India, witnessed a sharp rise in share prices on Thursday after its board 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.

Shares of the company are trading at Rs 210.70, up Rs 6.30, or 3.08% at the National Stock Exchange (NSE) on Thursday at 11:47 a.m.

The scrip has touched an intra-day high of Rs 217.20 and low of Rs 207.10.