Dunlop To Mobilize $90 m via Private Placemen

The Ruia Group is considering to privately place 14.5% of the promoter''s stake in Dunlop India for mobilizing $80-90 million through a mixture of loan and equity soon after the rights. The private placement would be a part of the Rs 550-crore revival plan of Dunlop. It is learnt that the company was in active dialogue with two overseas banks for the said private placement. BIFR, in a set of rulings on March 16, has permitted the company to straightaway issue 2.7 crore shares of the company at Rs 10 each on rights basis by April 15. The Ruia group currently holds 74.5 per cent controlling stake in the company through its Singapore based SPV Wealth Sea Pte and Manali Properties Ltd. Wealth Sea had acquired DIL Rim and Wheels, the holding company of Dunlop, through an overseas acquisition in late 2005. While BIFR has reportedly directed the company to complete the rights issue by April 15, Dunlop had previously proposed an open offer to its shareholders between March 24 and April 12.