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Axis Securities Report
Dalmia Bharat Ltd. continues with its strategy of exiting non-core business/investment. In line with this strategy, it has entered into a binding agreement to sell the entire investment of 1,87,23,743 equity shares of Rs 10 each (42.36% of share capital) of Dalmia Bharat Refractories Ltd. – an associate company, at a consideration of Rs 800 crore. to M/s Sarvapriya Healthcare Solutions Pvt. Ltd. – a promoter group company.
The transaction will be completed within 30 days i.e. on or before April 25, 2023 and the consideration for transfer of investment shall be received by Dalmia Bharat as follows:
Rs 160 crore – 20% payment on the date of consummation of the transaction.
Rs 320 crore – 40% by way of non convertible debentures redeemable on or before Dec 31, 2023.
Rs 320 crore – 40% by way of NCDs redeemable on or before September 30, 2024
The NCDs will carry a coupon of 8.5% per annum payable quarterly.
The company’s cement business now remains its core focus and it intends to become the pan India player. The overall cement capacity of the company will increase to 49 million tonnes per annum in FY24 with the completion of the ongoing expansion. Furthermore, it has signed a definitive agreement for acquiring JP Associates Cement assets of 5.4 mtpa located in the Central region. The company will update once the entire process of acquisition formally gets over.
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