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Our Bureau

Allows 5:3 at par rights issue for Rs 27 crore

MR P.K. RUIA

Kolkata March 18

The Board for Industrial and Financial Reconstruction (BIFR) has ordered the stock exchanges, including the Bombay Stock Exchange, to lift the suspension on trading of Dunlop India's shares. In a set of rulings on March 16, the board also allowed the company to go for a 5:3 at par rights issue Rs 27 crore by April 15, 2007.

According to a press release issued by Dunlop, "The company is exempted from compliance of the requirements under the acts and regulations formulated by Securities and Exchange Board of India (SEBI)" for the said fresh issue of 2.7 crore shares of Rs 10 each.

"The Board of directors of Dunlop India has already approved the rights issue proposal on March 17. We are hopeful to complete the entire procedure in 20 days of time," Mr P.K. Ruia, Chairman of Dunlop, told Business Line. According to him, the rights issue will enhance the equity capital of the company from Rs 45 crore to Rs 72 crore.

Ruia Group holds 74.5 per cent controlling interest in the company by a complete buy-out of DIL Rim and Wheels in an overseas transaction in 2005. DILRW is the holding company of Dunlop and Falcon Tyres.

Re-Listing

According to the company, BIFR has ordered the stock exchanges of Mumbai, Kolkata, Delhi, Chennai and Ahmedabad to lift the suspension on trading of the shares of Dunlop India Ltd with immediate effect.

The Board has also directed National Securities Depository Ltd (NSDL) and Central Depository Services Ltd (CSDL) to allot International Securities Identification Numbers (ISIN) for the company's entire shares to enable trading in dematerialised form at the Stock Exchanges.

Dunlop shares of Rs 10 each were last traded at Rs 6.60 at BSE on April 15, 2002. BSE finally suspended the trading of Dunlop in February 2003.

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