Dunlop India Ltd Shares Started Trading in BSE
Trading of shares of Dunlop India Ltd will resume on the BSE on Tuesday after nearly eight years.
According to a notice issued by the exchange on Wednesday, the BSE has revoked the “suspension of trading” of the equity shares of the company.
Trading in the shares will resume in the T category, signifying that every trade will be backed by delivery.
According to the BSE, approximately 2.7 crore equity shares issued by Dunlop on rights basis in 2007 are sub judice before the Delhi High Court and will not be traded. According to the company, the High Court has issued a stay order on listing of the said shares based on a petition filed by SEBI challenging the rights issue.
Dunlop’s shares were last traded on April 15, 2002, at Rs 6.60 a share on a face value of Rs 10. Trading was suspended for non-payment of requisite fees by the then Jumbo Group-controlled management.
“We have initiated the process for resumption of trading on Dunlop shares soon after acquisition of the company in end 2005. However, a series of regulatory issues involving SEBI, Board for Industrial and Financial Reconstruction and Appellate Authority for Industrial and financial Reconstruction and others delayed the process. We are happy that the interests of the investors in Dunlop India are finally being upheld,” a company official told Business Line.
According to the company, though the legal hurdles were more or less over by early 2009, the resumption of trading was further delayed due to dematerialisation of shares. “Based on due approval by the depository NSDL in mid-2009, we completed the formalities towards dematerialisation of shares,” the official added.
According to the official, the company will soon initiate the process of listing of the shares on the NSE.
Application is pending before the NSE for listing of shares of Ruia Group-controlled two-wheeler tyre maker Falcon Tyres. Shares of Falcon are traded on the BSE.
