Dunlop India Limited has hit the upper circuit of 20% at Rs 11.68 after the Ruia Group firm said that it has convened an Extraordinary General Meeting (EGM) on April 28 to seek the shareholders' approval on the proposal to convert the Rs 60 crore loan into shares.
According to the proposed arrangement, Dunlop India would make preferential allotment of 50 million shares of Rs 10 each at Rs 12 a share including a Rs 2 premium to Suncap Commodities Ltd (17.5 million shares), Regus Impex Private Ltd (17.5 million shares) and Salputri Commerce Private Ltd (15 million shares).
“The loan was taken for working capital requirements and the allotment to these entities would help in better restructuring of the company," the PTI report suggests.
Around 13,000 shares have changed hands on the counter in opening deals and there are pending buy orders for 58,808 shares on the Bombay Stock Exchange.
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