The National Company Law Tribunal (NCLT) Chennai has sanctioned the scheme of arrangement for the demerger of Dalmia Bharat Sugar & Industries Limited's (DBSIL) DMC Unit and GT Unit into Dalmia Bharat Refractories Limited (DBRL). This strategic move aims to streamline operations and enhance value for shareholders.

Key Details of the Demerger

• Approval Date: The NCLT order was pronounced on September 12, 2025.
• Appointed Date: July 1, 2023
• Share Exchange Ratio: Shareholders will receive 1 equity share of Dalmia Bharat Refractories for every 48.18 equity shares held in Dalmia Bharat Sugar.

Strategic Rationale

The demerger is expected to bring several benefits:

1. Segregation of non-core businesses from the sugar business
2. Focused management for DMC Unit, GT Unit, and sugar business
3. Increased flexibility for value extraction and fund-raising

Units Being Demerged

1. DMC Unit: Dalmia Magnesite Corporation
2. GT Unit: Govan Travels

Regulatory Compliance

The scheme has received observations and no-objection letters from all statutory authorities, including:

• Bombay Stock Exchange (BSE)
• National Stock Exchange (NSE)
• Calcutta Stock Exchange (CSE)
• Metropolitan Stock Exchange of India Limited (MSE)

Next Steps

The scheme will become effective once the certified copy of the NCLT order is filed with the Registrar of Companies, Chennai.

Management Commentary

Rachna Goria, Company Secretary of Dalmia Bharat Sugar & Industries Limited, stated, "This demerger will enable efficient and focused management individually on DMC Unit, GT Unit, and sugar business, leading to better value creation for our shareholders."

The demerger of DMC and GT Units from Dalmia Bharat Sugar into Dalmia Bharat Refractories marks a significant step in the company's strategic realignment. It is expected to unlock value for shareholders and allow for more focused growth in each business segment.

Dalmia Bharat Sugar & Industries , a prominent player in the sugar industry, has taken a significant step towards restructuring its shareholder categories. The company has formally applied to the Bombay Stock Exchange (BSE) and National Stock Exchange of India (NSE) for the reclassification of Birla Tyres Limited from the 'promoter and promoter group' category to the 'public' category.

Application Details

Dalmia Bharat Sugar submitted applications to both BSE and NSE, seeking their approval for this reclassification. This move follows a series of corporate actions and disclosures:

1. Initial Request: The company received a request from Birla Tyres Limited for reclassification.
2. Board Approval: Dalmia Bharat Sugar's board of directors met and approved Birla Tyres' reclassification request.
3. Exchange Application: The company filed the formal application with the stock exchanges.

Regulatory Compliance

The disclosure and application process aligns with Regulation 31A(8)(c) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This regulation governs the reclassification of promoters as public shareholders, ensuring transparency and proper procedure in such corporate actions.

Implications

If approved, this reclassification would alter the shareholding structure of Dalmia Bharat Sugar & Industries. Birla Tyres Limited, currently categorized under the 'promoter and promoter group', would be reclassified as a public shareholder. This change could potentially impact the company's promoter holding percentage and public float.

Next Steps

The ball is now in the court of BSE and NSE. The exchanges will review Dalmia Bharat Sugar's application and make a decision based on SEBI regulations and their own listing norms. Shareholders and market participants will be keenly watching for the exchanges' response, as it could have implications for the company's ownership structure and potentially its stock market dynamics.

Dalmia Bharat Sugar & Industries continues to keep its stakeholders informed through timely disclosures, demonstrating its commitment to transparency and regulatory compliance. As this process unfolds, investors and market analysts will likely monitor any potential impacts on the company's governance and market perception.