Dunlop board allots shares to convert loan into equity

April 29th, 2012 - 12:00 am ICT by IANS  

Kolkata, April 28 (IANS) The board of directors of Dunlop India Saturday allotted five crore equity shares on preferential basis to three loan assignees in order to convert the ailing tyre-maker’s outstanding loan of around Rs.60 crore into equity.

This which will enable promoter Ruia Group, led by Pawan Kumar Ruia, to bring down its holdings to 38.53 percent from 65.29 percent.

Earlier, the shareholders of Dunlop passed a resolution in an extraordinary general meeting (EGM) held in the city to convert the company’s outstanding loan into equity.

The board of the company has allotted five crore equity shares of face value of Rs. 10 each at Rs.12 per equity share (including premium of Rs.2 per equity share) to the three loan assignees, Suncap Commodities Ltd (1.75 crore shares), Regus Impex Private Ltd (1.75 crore shares)
and Salputri Commerce Private Ltd (1.5 crore shares), the company informed the Bombay Stock Exchange (BSE) Saturday.

Operations at both Sahagunj (West Bengal) and Ambattur (Tamil Nadu) plants of the company are now suspended.

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