Event Update on listing of Dalmia Bharat Enterprises: Keynote

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Event Update on listing of Dalmia Bharat Enterprises Ltd.

Highlights

Dalmia Bharat Enterprises Ltd. (DBEL), an entity that demerged from Dalmia Cement (Bharat) Ltd. is likely to be listed in the stock exchanges viz., BSE, NSE and MSE shortly before end of January 2011.

Background of DBEL

DCBL demerged its sugar and cement, power, refractories and other businesses into two different entities. DCBL changed its name into Dalmia Bharat Sugar Industries Ltd. (DBSIL), which looks after erstwhile DCBL’s sugar business. Now DBEL will be managing cement, power, refractories and other businesses. The demerger will help the company to focus on its core capabilities while other business such as sugar will operate as a separate entity. The company also holds majority stake in its proposed cement venture with a capacity of 10mn tonnes per annum. The global private equity major KKR Holdings Inc. (KKR) has already invested in the said company. DBEL also holds 45.4% stake in OCL India Ltd. (OCL), a cement major in eastern part of India.

Salient Features of DBEL

·      DBEL has strong execution capabilities as it executed projects worth `30bn, 4 locations across 3 states.  The company added cement capacities of 2.5mn tonnes each in Ariyalur (State - Tamil Nadu) and Kadapa (State - Andhra Pradesh).

·      The company has demonstrated higher growth compared to the other southern cement companies, which helped to gain significant market share in the said region.

·      Demerger will enable the company to focus on cement and cement related businesses.

·      The company has received first tranche amount of $500mn from KKR Holdings out of the total investment of $750mn.