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Trading in Dunlop shares to resume soon
Our Bureau
Kolkata, July 27
Trading in Dunlop India shares is likely to resume within a couple of weeks, according to its Chairman, Mr P.K. Ruia.
The trading has remained suspended since 2002. The impasse on open offers too will be over soon.
Talking to newspersons after the AGM of Dunlop here, Mr Ruia said the company's appeal for re-listing of shares, though received favourable response from various legal forums in the past, did not make much headway as the company's shares were not de-materialised by the depository."Though SEBI is not directly involved in this matter, we recently approached it to have some of the pending issues resolved, following which we received a communication from NSDL on dematerialisation of our shares. Accordingly, the de-materialisation job is over. We are now required to take the board approval on certain related issues to approach BSE for resumption of trading. The entire process is expected to be over soon," he said.
He, however, added that the 2.7 crore shares issued on rights basis in 2007 would not be available for trading now due to a pending stay order of the Delhi High Court. The order was issued in response to a petition filed by SEBI, challenging the rights offer.
Earlier, both the Board for Industrial and Financial Reconstruction and the Appellate Authority for Industrial and Financial Reconstruction favoured listing of these shares, said Mr Ruia.
Open offer
He pointed out that the company, following the SEBI directive in 2006, had offered to pay Rs 10 a share to its shareholders in the open offer, as against the last traded price of approximately Rs 5 a share.
"However, a SEBI-appointed valuer fixed the open offer price at Rs 43 a share. We contested the valuation principles and approached Securities Appellate Tribunal (SAT) seeking appointment of a top audit firm for this purpose. SAT recently appointed Deloitte. If the report is acceptable to us, we will immediately go for the open offer," Mr Ruia said.
It may be mentioned that the Ruia group has accepted a parallel SEBI valuation of Rs 151 a share in the case of Falcon Tyres. The open offer closed recently.
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