Dalmia Cement to see minimal impact from MF units transfer: India Ratings  

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

The illegal and unauthorised transfer of Rs 344-crore worth mutual fund units by the depository participant from demat accounts of units of Dalmia Cement (Bharat) will have only marginal impact on its liquidity and credit profile, even in case of a complete write-off, according to rating agency India Ratings and Research.

The erstwhile subsidiaries, OCL India Limited and Dalmia Cement East Ltd, have been merged with Dalmia Cement (DCBL).

In case of the complete write-off, Ind-Ra estimates that DCBL's net leverage (FY18: 2.46x) will deteriorate by 0.15x-0.17x over FY19-FY20. 

However, the net leverage is likely to remain below 2.5x from FY20, in view of the announced capex plans for the eastern region and an improvement in the operating performance. 

"DCBL's business fundamentals remain intact with the expectation of robust volume growth through higher capacity utilisation of acquired assets/new capacities and a margin rebound due to operating leverage, cost efficiencies and premiumisation of the product mix," India Ratings and Research said in its report.

DCBL has scheduled repayments of Rs 1,000 crore, and Rs 1,400 crore in FY20 and FY21, respectively. 

According to the ratings agency, DCBL has maintained a high cash and equivalent buffer sufficient to meet debt repayment obligations in the next 12-18 months (around Rs 1,900 crore, excluding the transferred mutual fund units). 

The case

ODCL has reported the matter to National Securities Depository Limited, the National Stock Exchange and The Securities and Exchange Board of India (SEBI), as well as filed a criminal complaint with the Economic Offences Wing (EOW), New Delhi. 

According to the company, the case is under investigation by SEBI and EOW, and appropriate actions are being taken, including keeping the transfer/redemption of the said units on hold.

SEBI has also issued an ex parte ad interim order, restraining the depository participant, Allied Financial Services Private Limited, and its directors and certain associated concerns from access to the securities market and prohibiting dealing in securities in any manner. 

The order was passed on the basis of the findings of irregularities by the National Stock Exchange, pending completion of a forensic audit.

In its press release dated 6 March 2019, ODCL further clarified that it never authorised the depository participant to transfer, use or pledge these securities. It reiterated that the depositary participant fraudulently transferred the securities without consent, knowledge or mandate.

According to the management, the rest of the treasury portfolio is secure and it is maintaining high standards of internal controls. However, it is reviewing the processes and controls to further refine them.