DALBHARATBSEDalmia Bharat LtdHighPositive
Announced Fri, 22 May · 01:07 IST

Execution of Business Transfer Agreement to acquire 5.2 MnTPA Cement Capacity in Central Region from Jaiprakash Associates Ltd (acquired by Adani Group)

Listed Co AcquisitionCore Business DivestedStrategic Transactions View source PDF

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AI summary

Dalmia Cement (Bharat) Limited (DCBL), a wholly owned subsidiary of Dalmia Bharat, has executed a Business Transfer Agreement with Jaiprakash Associates Ltd (JAL) and Adani Infra (India) Ltd to acquire cement assets comprising 5.2 MnTPA cement capacity, 3.3 MnTPA clinker capacity, and 99 MW thermal power across plants in Rewa (MP), Churk, Chunar and Sadwa (UP) at an Enterprise Value of Rs 2,850 Cr. Post-acquisition, Dalmia Bharat's cement capacity rises to 54.7 MnTPA, with further expansion planned to 66.7 MnTPA by Q2-Q3 FY28. The deal is expected to close within two weeks. The acquisition aims to settle all pending disputes with JAL, including those under the earlier Framework Agreement and an arbitral award, stemming from JAL's admission to insolvency and subsequent acquisition by Adani Group under IBC.

Likely market impact

This acquisition gives Dalmia Bharat faster access to high-growth Central India markets via brownfield assets rather than greenfield development, with debottlenecking and further expansion potential. The transaction boosts capacity by ~10.5% and strengthens its pan-India footprint while resolving long-standing legal disputes.