Dunlop resumes trading; hits circuit with 20 pc gain

Kolkata, Apr 19: Shares of Dunlop India Ltd made 20 per cent gain at Rs 11.68 on the BSE early today as it resumed trading after two weeks following confusion related to a winding up court case.

"Trading was stopped from April 30 over a confusion on a winding-up court case. But, we have clarified and got permission for resuming the trading," Ruia group chairman Pawan K Ruia told PTI. Dunlop India, which is controlled by the Ruia Group, had said promoters' holding was reduced from 65.29 per cent to 38.53 per cent post issue of 50 million fresh shares.

According to BSE data, promoters' holding as on December 2011 was 73.66 per cent. Since January, promoters offloaded 8.3 per cent holding in the open market to bring down their holding to 65.29 per cent now.

The shares will be issued at Rs 12 a share (including Rs 2 premium) of Rs 10 each on preferential basis to three firms to offset Rs 60 crore inter-corporate loan taken in 2011.

According to the proposed arrangement, Dunlop India would make preferential allotment of 17.5 million shares to Suncap Commodities Ltd and Regus Impex Private Ltd, while 15 million shares to Salputri Commerce Private Ltd.

AEGM had been convened on April 28 to seek shareholders' nod. Post issue, the paid up capital would increase from Rs 71.98 crore to Rs 121.98 crore.

PTI