*The new entity, under which both businesses will be housed, will get listed by the year-end.*
Dalmia Cement Bharat (DCBL) board has approved the demerger of its cement and power business into a separate company Dalmia Bharat Enterprises (DBEL). The new entity will get listed on the stock exchange by the end of this year. After the restructuring, DCBL will become a pure-play sugar firm and is likely to be renamed. As a part of the demerger, DBEL will issue one share of Rs 2 for every one share of the same amount owned by an investor in DCBL. The demerged entity will get listed on the Bombay Stock Exchange, the National Stock Exchange and the Madras Stock Exchange in the next six to eight months. The cement and thermal power business will be housed under DBEL as two separate subsidiaries - Avnija Properties and DCB Power Ventures. So DBEL will become a public listed holding firm of cement and power businesses. Commenting on the rationale for the proposed restructuring, Puneet Dalmia, Managing Director of DCBL, added, "the proposed realignment will give each business the right fillip for growth. Plans are already in place in our cement business to create a national presence with a particular focus on growth markets across India. We shall continue with our regular operations and initiatives under the new structure. The sugar business offers investors a sizeable opportunity given the favorable macro dynamics in the sector. The demerger itself will create distinct corporate entities that will give our existing shareholders additional liquidity." The company draws majority of its revenues from the cement business which has annual capacity of 9 million tonnes in units located at Tamil Nadu and Kerala. -- Regards Hardik Shah -- You received this message because you are subscribed to the Google Groups ""GLOBAL SPECULATORS"" group. To post to this group, send email to [email protected]. To unsubscribe from this group, send email to [email protected]. For more options, visit this group at http://groups.google.com/group/globalspeculators?hl=en.
