Dalmia Cement (Bharat) on Thursday said it would hive off its cement, power and refractory businesses to a new entity — Dalmia Bharat Enterprises (DBEL) – as part of its restructuring plan, to pursue aggressive growth.
The sugar making division, however, will remain with the parent company, DCBL Managing Director Puneet Dalmia told reporters here. DCBL shareholders would get one share in DBEL for every share they held in the company. The appointed date for the transfer is April 1.
“The restructuring, subject to regulatory and other approvals, will be beneficial in more ways than one. It will allow each business to chart out its aggressive growth plan and unlock shareholders’ value,” Mr Dalmia said.
DBEL shares would be listed on the Bombay, National Madras stock exchanges after the completion of the restructuring scheme, which might take 8-10 months from now.
The proposed entity will have 100 per cent control over Avnija, which will operate the 9Mt cement making capacity; full control on Dalmia Cement Ventures, which plans to have 10Mt greenfield capacity and 45 per cent holding in OCL India, which has 5.3Mt capacity.
The power business has 72MW capacity now. DCBL, under which the sugar business will run, might also be rechristened, but the company is yet to find a suitable name.