Shares of Dalmia Bharat Sugar and Industries Ltd rose 1.34 percent to Rs 375.45 in the morning trade on June 30 after the board approved a scheme of arrangement between the company and Dalmia Bharat Refractories for the transfer of two non-core business units.
In an after-market-hours filing on June 28, Dalmia Bharat Sugar said its DMC unit, which manufactures refractories, and GT unit, engaged in the business of tour and travel services, would be demerged and vested into Dalmia Bharat Refractories Limited as a going concern.
One equity share (face value of Rs 10 each) of Dalmia Bharat Refractories will be issued and allotted to the shareholders of Dalmia Bharat Sugar and Industries Limited for every 39 fully paid equity shares (face value of Rs 2 each) held by them in Dalmia Bharat Sugar.
No cash consideration is payable under the scheme.
The scheme is subject to necessary statutory and regulatory approvals , including from the National Company Law Tribunal, Chennai Bench.
The demerged undertakings’ turnover stood at Rs 29.43 crore as on March 31, 2023, accounting for 0.90 percent of the company’s total turnover.
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Dalmia Bharat Sugar said the demerger will result in segregation of non-core businesses from the sugar business, resulting in efficient and focused management of DMC Unit, GT Unit, and sugar business.
This will also increase flexibility for value extraction and fund raise, it added.
There will be no change in the shareholding pattern of Dalmia Bharat Sugar and Industries Ltd.
As of March 2023, promoters held 74.99 percent stake in the company, with the remaining 25.01 percent with the public.
Dalmia Bharat Sugar is one of the leading sugar producers in the country. Its clients include Coca-Cola, PepsiCo, Mondelez, Perfetti, Britannia, Wal-Mart India, United Breweries and Carlsberg.
Dalmia Bharat Sugar is down 4 percent this year, though the 1-year return stands at 20 percent.
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