Trade suspension on Dunlop shares lifted
BIFR has asked the stock exchanges to lift the suspension on trading of the ailing tyre major Dunlop India Ltd.
New Delhi: With the production in its Ambattur and Shahagunj factories stabilising, Dunlop India Ltd shares are all set for trade once again on the bourses after more than three years.
The Board for Industrial and Financial Reconstruction (BIFR) has asked the stock exchanges to lift the suspension on trading of the ailing tyre major.
A Dunlop India statement said BIFR in its order dated March 16, directed stock exchanges of Mumbai, Kolkata, Ahmedabad, Chennai and Delhi to lift suspension and also directed both the depositories, NSDL and CSDL, to issue identification number for demat of the shares.
Dunlop shares were last traded in February 2003.
As quoted by PTI, Dunlop India Ltd chairman Pawan Kr Ruia said, "We had been trying to debottlenck the issue since we took over Dunlop in 2005. Now, the shareholders will be rewarded for their patience as the production in both factories of Ambattur and Shahagunj is stabilising."
The Ruias hold 74 per cent stake in the company.
The statement said the BIFR order had also permitted the company to issue 27 million new shares of Rs 10 each by April 15, 2007 and increase the authorised capital to Rs 75 crore from Rs 70 crore now.
The current paid up capital of the tyre company is Rs 45 crore but after the proposed rights offer it will go up to Rs 72 crore.
In line with the Securities and Exchange Board of India (SEBI) the new management of Dunlop India under Ruia has made an open offer of the company at Rs 10 each upto 20 per cent of the equity of the company. The open offer will close on March 23.