NEW DELHI, FEBRUARY 21: The stalemate over the sale of 44 per cent stake by financial institutions (FIs) in Modi Rubber Ltd is likely to continue with some shareholders dragging FIs to the Monopolies and Restrictive Trade Practices (MRTPC) on the issue.``Some shareholders have approached the MRTPC against FIs' decision to sell the stake in Modi Rubber,'' IDBI chairman GP Gupta said.
Gupta indicated that the FIs may have to wait till a final word from MRTPC is received. He, however, refused to divulge details. Institutional sources said that the shareholders have alleged in their petition that FIs were acting in connivance with other tyre manufacturers.
FIs including Unit Trust of India (UTI), Life Insurance Corporation (LIC) and General Insurance Corporation (GIC) hold a substantial chunk of the 44 per cent stake in Modi Rubber. IDBI's stake in the company is comparatively low.
Reportedly, domestic tyre companies like JK Tyres, Ceat Tyres, Continental AG and Apollo Tyres have submitted their bid with SBI Capital Markets to buy the stake in the domestic tyre company.
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