Shares of Dalmia Bharat slumped over 5 percent on Tuesday, December 13, a day after the company signed an agreement with Jaiprakash Associates, a subsidiary of the Jaypee Group, to acquire its cement plants for ₹5,666 crore.
During Tuesday’s trade, the stock opened positively at a price of Rs. 1,925 per share against the previous close of Rs. 1,906.30 per share. However, it dipped during the early trading session to reach an intraday low of Rs. 1,806.
It was trading at ₹1,857.20, down by 2.58 percent, at 11:50 a.m. on the NSE.
The stock touched a 52-week high of Rs. 2,104.15 on January 17, 2022 and a 52-week low of Rs. 1,212.50 on June 20, 2022, indicating that at the current level, the stock is trading over 53 percent above its 52-week low and 11.7 percent below its 52-week high.
In the past one month, the stock has shown a positive growth of almost 9 percent. Whereas, it has grown by over 46 percent in the last six months. In the last five years, the stock has gained nearly 86 percent.
Dalmia Bharat’s wholly owned subsidiary Dalmia Cement has entered into an agreement to acquire the cement, clinker and power plants of Jaiprakash Associates having a total cement capacity of 9.4 million tonnes (along with a clinker capacity of 6.7 million tonnes and thermal power plants of 280MW).
The acquisition will enable the company to expand its footprint into the central region and will represent a significant step towards the realisation of its vision to emerge as a pan-India cement company with a capacity of 75 MnT by FY27 and 110‐130 MnT by FY31, the official filing stated.
The transaction is subject to due diligence, requisite approvals from lenders/JV partner of Jaiprakash Associates and regulatory authorities.
This is the second asset sale agreement that the indebted Jaiprakash Associates has secured with the Dalmia Group. In 2015, the business sold the Dalmia Group the majority ownership of cement production facilities with a 2 MTPA capacity. To fend off a proposal from its lenders to declare bankruptcy, the organisation has been making a number of efforts to decrease debt.
Dalmia Bharat is principally engaged in the business of manufacturing and selling of cement and its related products and refractory products. The cement business, through sustainability initiatives, has achieved the lowest carbon footprint in the cement sector globally and is amongst the most efficient cement companies in the world, its website shows.
According to a Mintgenie poll, 30 analysts on average have a ‘BUY’ call on the stock.
