Apollo tyre's punture after sacking over load !!! Apollo -Cooper Deal

Apollo tyres is on buying spree, had managed to bid for almost 2.5B US $ for Cooper. One of the biggest deals in Automotive industry.
Every-one went awestruck with this move, the combined ltd. will now be the world's 7th largets tyre maker. Apollo can now keep its foot steps in China and other european makets where Cooper had its presence, Cooper also can now find its way in the subcontinent. The glory of the deail is over for now.

BSE and NSE had something else to share with which Apollow would not have ever thought of, here below are those details for you.

The share have gone down by 26% , throwing the company's share to a 52 week low. this is due to the cash deal which Apollo went for, all cass of 2.5Billions, though Apollo manages to find all these in the form of bonds by keeping the assets of Cooper, it also had to raise around 500M $ form its own assets, 

the deail is very benificial to both the companies however in financial terms this looks over ambitious and very sensitive, Apollo had prepare to pay much more than the demand, Automotive industry is growing from the economic crisis in recent past, we can still find Europe in cririsis zone. Clearly markets need to emerge a lot to support aggressive deals like this, and they have to suppor them to keep companies alive. 

"Post this acquisition, the Net Debt/EBITDA will expand to 3.8x and the consolidated net D/E will move up from 0.53x to 1.35x,"

1. My take: 

The total Debt will finally fill the books of Apollo and they have to finally repay which would yield in less returns, if markets go down then it also yields to the dividend cuts and less margins.

Markets would never find it hard to take so, the shares would go down and the strain of the balance sheet can clearly pain the share holders who dont wanna leave now with stop loss.

the target of Apollo was once set to 104, but for now things changed and the targets too change, the 100+ is now panned out.