Dunlop India has extended the ongoing rights offer till April 24. The decision is aimed at participation of a larger number of existing shareholders. The issue, which opened on April 2, was already extended from April 6 to April 9 and was "oversubscribed" with financial institutions having applied for additional allotments.
Talking to newspersons after the company's extra-ordinary general meeting here on Saturday, the Chairman, Mr P.K. Ruia, said that though the issue was oversubscribed, there were requests for extension of the same.
"A large number of shareholders complained about non-receipt of offer document or other issues. Also we found that only 1,478 shareholders out of a total 35,000 participated in the rights. Accordingly, we decided to give a fair opportunity especially to minority shareholders of the company to participate in the rights," he said.
The EGM also approved enhancement of the company's authorised share capital from the existing Rs 70 crore to Rs 175 crore. This includes issue of over Rs 100 crore of preferential capital.
Mr Ruia said that the resolutions were placed to enable the company to attract investment. On re-listing in stock exchanges, he said the company has applied to National Securities Depository Ltd for demating of shares. The proposal for open offer is yet to be cleared by SEBI.
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