| Dunlop India, a Ruia group company, has raised $90 million (around Rs 360 crore) from a consortium of offshore hedge funds to restructure loan and to meet other corporate needs. |
| The structured deal offers the funds an option to pick up to 15 per cent stake in the tyre maker. |
| “We have recently signed a deal with a clutch of offshore hedge funds headed by Spinnakar Capital Group to raise a loan of $90 million. We have also raised Rs 121 crore from Deutsche Bank,” Dunlop Chairman Pawan Kumar Ruia told PTI. |
| The loan was raised by Dil Rim and Wheel (DRW), the Mauritius-based holding company of Dunlop India and Falcon Tyres, which bought the companies from the Chabbrias for Rs 200 crore. |
| To facilitate the loan, DRW has undertaken structural changes with the assets of the company. |
| Dunlop transferred its ‘non-core’ assets into two subsidiaries and shares of these two units were pledged to two other firms controlled by DRW, which in turn had been pledged to Spinnakar Capital. |
| Simply put, only the non-core assets of Dunlop are now pledged with the offshore lender. |
| “The non-core assets of Dunlop do not include plant and factories at Shahagunj and Ambattur, and are valued at about Rs 900-1,000 crore after revaluation,” said a company official. |
| Manufacturing facilities at Shahgunj and Ambattur alone were revalued at Rs 1,072 crore. |
| Meanwhile, Ruia said the company has submitted a proposal to the West Bengal government for an IT SEZ on the Shahagunj facility’s surplus land. |
Source: Business Standard