Calcutta, March 18: The Board for Industrial and Financial Reconstruction (BIFR) has allowed trading in Dunlop India shares, paving the way for re-listing of the country’s oldest tyre manufacturer on the Bombay Stock Exchange (BSE).

The board has also allowed a rights issue of Rs 10 on a par to raise Rs 27 crore for the ailing company.

In a letter dated March 16, the BIFR has directed the stock exchanges of Mumbai, Calcutta, Delhi, Chennai and Ahmedabad to lift the suspension on trading of Dunlop shares.

It has also directed the National Securities Depository Limited (NSDL) and Central Depository Services Limited (CSDL) to allot international securities identification numbers (ISIN) for all the shares of Dunlop to enable trading in dematerialised form on the exchanges.

The Dunlop scrip was last traded at Rs 6.60 a share on the Bombay Stock Exchange on April 15, 2002. The trading has been suspended since February 2003.

“I am very happy with the development. The real worth of the Dunlop stock will be unlocked now,” Pawan Kumar Ruia, chairman of Dunlop India, said.

The rights issue will increase the paid-up share capital of the company.

The paid-up share capital will increase from Rs 45 crore to Rs 72 crore. The authorised share capital would go up to Rs 75 crore from Rs 70 crore.

The rights issue will involve an investment of Rs 20 crore by Ruia, who holds about 74.49 per cent stake in the company.