Tire maker Dunlop India Ltd. expects its shares to resume trading on the Bombay Stock Exchange in the next 10-15 days, after a gap of more than seven years, Chairman Pawan Ruia said Friday.
Initially, 45 million shares will be traded, while another 27 million shares will start trading after receiving approval from capital-market regulator Securities and Exchange Board of India, Ruia told reporters.
Dunlop India shares last traded on the exchange in April 2002, as per information on the BSE Web site. Their last trade price was INR6.60.
The trading was suspended due to litigation and labor problems at the company, said Ruia, who had acquired Dunlop India and Falcon Tyres Ltd. in late 2005 from Manu Chhabaria of Dubai-based Jumbo Group.
"When we acquired the company, there was a labor issue. There were 200 cases in court, there were INR6 billion in liabilities," he said. "It took us almost two years to fight these cases with the SEBI and with the BSE."
Ruia said 27 million shares were still blocked due to litigation and therefore needed the regulator's approval for trading. He didn't elaborate on the nature of litigation.
Meanwhile, the company is considering raising money to fund a power project, he said, adding, it will likely take a decision on the funding within the next six months.
"We are looking to dilute a 10% stake in the company," he said, without elaborating on the size of the power project and the amount the company was planning to raise.
Ruia, who is also the chairman of Falcon Tyres, said that company is investing INR3 billion to raise capacity at its Mysore factory in the southern state of Karnataka.
Falcon Tyres plans to increase its capacity to 1.4 million tires a month from the current 900,000, he said.
Two-thirds of the funds required for the expansion have already been raised through debt, he added.
(Source: irco.biz)
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