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Jumbo group ups Dunlop stake to 58%

BS Corporate Bureau in Mumbai

The Dubai-based Jumbo group has increased its holding in ailing tyre company Dunlop India to 58 per cent from around 40 per cent.

The additional stake in Dunlop was picked up by Gordon Woodroffe, another Jumbo group company, which was till recently controlled by Kishore Chhabria.

A Jumbo group spokesperson confirmed that the promoters have injected Rs 260 million as part of a Board for Industrial and Financial Reconstruction rehabilitation package.

The Appellate Authority for Industrial and Financial Reconstruction recently passed an order permitting the company to convert the injected amount of Rs 260 million into capital.

Accordingly, Dunlop India's share capital, which was at Rs 184 million earlier, now stands at Rs 444 million.

"Based on an independent valuation vetted by operating agency the conversion has been carried out at par pursuant to the AAIFR order," the spokesperson said.

The original holding of the Chhabria group in Dunlop India was about 40 per cent which was held through Dunlop Rims and Wheel, an overseas company that was controlled by the late Manu Chhabria.

The AAIFR, which has been hearing the case of the ailing Dunlop India, had ruled that the promoters will have to infuse fresh capital before the rehabilitation package submitted before it could be considered.

Apart from the manufacturing plant at Shahagunj outside Kolkata, the Dunlop management had been forced to close down the registered office of the beleaguered Dunlop as well.

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