Ruia to raise Rs 100cr for Falcon, dilute 10% stake in Dunlop | business | Hindustan Times
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Ruia to raise Rs 100cr for Falcon, dilute 10% stake in Dunlop

Tyre maker Ruia Group today said it will raise Rs 100 crore in listed-entity Falcon Tyres through Qualified Institutional Placement (QIP) and dilute 10 per cent stake in Dunlop India for capacity expansions in the next few months.

business Updated: Dec 04, 2009 20:19 IST

Tyre maker Ruia Group today said it will raise Rs 100 crore in listed-entity Falcon Tyres through Qualified Institutional Placement (QIP) and dilute 10 per cent stake in Dunlop India for capacity expansions in the next few months.

"We are increasing capacity in Falcon Tyres by 0.5 million units a year with an investment of Rs 300 crore. For this, we plan to raise Rs 100 through the QIP route," Group Chairman Pawan K Ruia said here.

Mysore-based Falcon Tyres and its Maharashtra-based subsidiary Monotona Tyres have a cumulative 1.25 million tyres making capacity in a year to cater to the two-three wheeler industry.

Ruia said public sector lender Central Bank of India has approved Rs 100-crore debt to fund the expansion project, while the Group is in talks with other lenders for raising a similar amount.

Ruia Group holds 86 per cent stake in Falcon Tyres and 74 per cent holding in Dunlop India, which has two tyre-making plants at Sahaganj, near Kolkata and at Ambattur in Chennai.

Both the Dunlop units were shut down till recently and are currently making 40 tonnes of off the road (OTR) tyres per day, he said.