Falcon Tyres Divesting to Remain Listed
A chunk of Ruia Group company Falcon Tyres will be sold in order to increase ouput at its factory in Mysore, eastern India, and to ensure its promoters shareholder remains below the 75 per cent required to stay listed on the Bombay Stock Exchange. The share, according to Indian media, is to be sold to a private equity firm for Rs 1 billion (£12.6 million).
“We are in the process of preparing our presentation and hope to be through with the placement within the next two months,” Falcon Tyres chairman Pawan Kumar Ruia told the Hindu Business Line. Ruia reports that the promoters’ share in the company went up to 86 per cent following the recently concluded open offer requiring either a public issue or private placement.