Dalmia Bharat Limited today said that its wholly-owned subsidiary Dalmia Cement (Bharat) has entered into a binding agreement to sell its entire investment in its associate company Dalmia Bharat Refractories Limited to Sarvapriya Healthcare Solutions Private Limited (Sarvapriya).

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Dalmia Cement (Bharat) will sell its entire investment of 1,87,23,743 Equity Shares of Rs 10 each (42.36 percent of share capital) of Dalmia Bharat Refractories to Sarvapriya Healthcare for Rs 800 crore. Sarvapriya Healthcare Solutions Private Limited is a promoter group Company.”

In a regulatory filing, Dalmia Bharat said, “In line with its strategy to exit non-core business/investment and pursuant to the approval granted by its Board of Directors in its meeting held on March 25, 2023, Dalmia Cement (Bharat) Limited (DCBL), a material wholly owned subsidiary of the Company, has entered into a binding agreement to sell its entire investment of 1,87,23,743 equity Shares of Rs. 10 each (42.36 percent of share capital) of Dalmia Bharat Refractories Limited (DBRL), an associate company, at a consideration of Rs. 800 cr. to M/s Sarvapriya Healthcare Solutions Private Limited (Sarvapriya), a promoter group Company.”

Also read: 'It has been an unusual quarter for cement stocks': JP Morgan India

As per the regulatory filing the consideration for the transfer of investment shall be received by DCBL as follows:

20 percent that is Rs 160 crore payment on the date of consummation of transaction

40 percent that is Rs 320 crore by way of NCDs redeemable on or before December 31, 2023

40 percent that is Rs 320 crore by way of NCDs redeemable on or before September 30, 2024

The cement manufacturing company has said that the transaction will be consummated within 30 days, i.e. on or before April 25, 2023.

The NCDs will carry a coupon of 8.5 percent per annum payable quarterly.

Also read: Here's why Dalmia Bharat picked up an asset that was rejected by Adani and Birla

First Published:Mar 26, 2023 8:00 PM IST