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Dalmia Bharat and OCL India today said their boards have approved merger of the two firms to simplify the group structure, with one listed entity that will create the country’s fourth largest cement player.
The merged entity will be called Dalmia Bharat Ltd (DBL).
“The Board of Directors of Dalmia Bharat Ltd (DBL), OCL India Ltd (OCL), Dalmia Cement (Bharat) Ltd (DCBL) and Odisha Cement Ltd (ODCL)...approved a Scheme of Arrangement and amalgamation for the merger of Dalmia Bharat with OCL India and the merged entity to be renamed as Dalmia Bharat Ltd,” DBL said in a BSE filing.
It added: “Simultaneously, the business undertakings of OCL will be transferred into DCBL consolidating DCBL’s cement manufacturing capacity within same legal entity.”
The company further said the respective boards “considered and approved plans to reorganise the businesses with a view to simplify the group structure, create one listed entity, consolidate into a single operating cement company, pursue focused growth towards a pan-India presence and renewed and sharper focus on sustainable development.”
Dalmia Bharat Group MD Puneet Dalmia said: “This action further strengthens our position as one of the leading cement players in India, uniquely placed to support India’s economic growth and demonstrates our commitment towards achieving simplification and consolidation.”
Directly or through its sibsidiaries, DBL holds 100 per cent stake in DCBL, while DCBL owns 74.66 per cent stake of OCL. ODCL is wholly-owned subsidiary of OCL.
The scheme is subject to stakeholder and regulatory approvals, including stock exchanges and other relevant authorities.
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