Mumbai: Shares of tyre companies slipped down in the Indian share market. The stocks traded lower as the Competition Commission of India (CCI) imposed a penalty of approximately Rs 1,788 crore on five tyre companies on Wednesday.
Shares of Apollo tyres, CEAT, MRF, JK tyre and Birla tyres slipped down by 3% on Thursday after CCI imposed fines on them. Ceat stock reached 52-week low value of Rs 1035per share on the BSE. Shares of Apollo tyres declined by 0.95% to Rs 223.35 on the BSE. Similarly, shares of Ceat, reached at Rs 1092.75 per share, lower by 0.29%. MRF, JK Tyre and Birla tyres edged lower by 0.15%, 1.87% and 2.88% to Rs 71415, Rs 133.85 and Rs 25.25 per share on the BSE.
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The CCI had imposed a penalty on tyre companies for indulging in cartelisation by acting in concert to increase the prices of cross ply/bias tyres variants sold by each of them in the replacement market and to limit and control production and supply in the said market.
‘The tyre manufactures had exchanged price-sensitive data amongst them through the platform of their association, namely, Automotive Tyre Manufacturers Association (ATMA), and had taken collective decisions on the prices of tyres’, a statement issued CCI said.
CCI has imposed a penalty of Rs 425.53 crore on Apollo Tyre, Rs 622.09 crore on MRF, Rs 252.16 crore, Rs 309.95 crore and Rs 178.33 crore on CEAT, JK Tyre and Birla Tyres respectively.
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