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The unauthorised transfer of mutual fund units worth ₹344 crore of Odisha Cement, an erstwhile subsidiary of Dalmia Cement (Bharat), is likely to have a marginal impact on the company’s liquidity and credit profile, even in case of a complete write-off, said India Ratings and Research.
The company late last month reported to the NSDL, the NSE and SEBI besides filing a criminal complaint with the Economic Offence Wing, New Delhi, on the illegal transfer of units by the depository participant.
SEBI also issued an ex parte ad interim order, restraining the depository participant, Allied Financial Services, and its director and certain associated concerns from accessing the securities market.
The company said the depositary participant fraudulently transferred the securities without consent, knowledge or mandate. Subsequently, Odisha Cement and Dalmia Cement East merged with DCBL.
India Ratings said it will continue to monitor the development as the company has scheduled repayments of ₹1,000 crore and ₹1,400 crore in the next two fiscals. The company has maintained a high cash and equivalent buffer sufficient to meet debt repayment obligations in the next 12-18 months. It has reserves of about ₹1,900 crore, excluding the transferred mutual fund units and fund-based limits of ₹748 crore.
In case of a complete write-off, Ind-Ra estimates that DCBL’s net leverage could deteriorate marginally.
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