The boards of Dalmia Bharat Limited and OCL India Ltd (OCL) have decided to merge the two entities, a move that will create the fourth largest cement maker in the country with an installed capacity of 25 million tonnes per annum and annual revenues of about Rs 10,000 crore.
Dalmia Bharat, the flagship company of Dalmia Bharat Group, and OCL are the two listed companies engaged in the cement manufacturing. Dalmia Bharat owns 75 per cent stake in OCL while the group promoters own 57.4 per cent equity stake in Dalmia Bharat. OCL will merge with Dalmia Bharat Limited, which will issue fresh shares for the public shareholders in lieu of their ownership in OCL. Public shareholding in OCL is a little over 25 per cent. Dalmia Bharat will not issue any fresh shares against its own 74.9 per cent stake in OCL. “We are simplifying the ownership in a transparent manner,” said Puneet Dalmia, managing director of Dalmia Bharat Group.