BSE allows trading in Dunlop shares issued as rights

The Bombay Stock Exchange Ltd (BSE) in a notification dated 31 May 2010 has allowed trading of 2.7 crore shares of Dunlop India Ltd, issued as rights to the shareholders. The BSE notice (no: 20100531-17) also states that these shares are pari-passu with the old equity shares of the company. There is no bar now on de-matting and trading of all the 7.2 crore equity shares of the Company. Trading is permitted in both physical mode and electronic mode.

Commenting on the development, Mr Pawan K Ruia, Chairman, Dunlop India Ltd, said: “I am very happy today because I have been able to fulfil the promise I made to the shareholders of Dunlop. The entire capital of the company is now free to be traded in stock exchanges. We are confident that the shareholders will get fair value for the loyalties they have shown to the company for so many years. That's exactly what we have been committing ever since we took over the company."

Dunlop India Ltd has a total equity base of Rs 72 crores, of which public holding is 26%. After a gap of almost 8 years, on and from 12 January 2010 BSE allowed trading in 4.5 crore equity shares of face value Rs 10. Now, from today onward trading in 2.7 crore equity shares issued as rights has been permitted by BSE. The scrip code at BSE is 509130 and the International Securities Identification Number (ISIN) allotted by NSDL and CDSL is INE 509A01012.

The good news for the Dunlop shareholders comes at a time when both its plants at Sahaganj (West Bengal) and Ambattur (Tamil Nadu) are operational and the management has declared its intentions for setting up a 50 MW co-generation power project at the Sahaganj plant. The Ambattur plant is gearing itself to manufacturing tyres for 2 wheeler vehicles, a segment which is experiencing significant growth in recent times.