The Scheme of Demerger approved by Shareholders of Dalmia Cement (Bharat) Limited on June 2nd 2010, to undertake split of the businesses in two entities, one the existing entity to house integrated Sugar Business and the new entity Dalmia Bharat Enterprise Limited to house Cement and other businesses, has been approved by Madras High Court on July 29th 2010. Pursuant to the court order the Scheme has been filed with the Stock Exchanges and Registrar of the Companies on September 1st 2010.
To reflect the post restructuring businesses, the name Dalmia Cement (Bharat) Limited has been changed to Dalmia Bharat Sugar and Industries Limited wef September 7th 2010 as intimated by Registrar of Companies and the particulars of the name change are being forwarded to Stock Exchanges for the change of the existing name to the new name, the change in name of the existing listed entity to Dalmia Bharat Sugar and Industries Limited is expected to be done by stock exchanges shortly. It may be noted that post this change of name, the company will continue to trade as present as a combined cement and sugar company.
In terms of the Scheme, the shareholders of the Dalmia Cement (Bharat) Limited (renamed to Dalmia Bharat Sugar and Industries Limited) are entitled to shares of the new entity Dalmia Bharat Enterprise Limited in the ratio 1:1. The existing company has informed to stock exchanges for fixing the record date as September 27th, 2010 for determining the entitlement of the shareholders. Post the record date the shareholders as at the close of the record date would be allotted shares of DBEL forthwith.
For clarification, post record date the market price of equity shares of Dalmia Cement (Bharat) Limited (renamed to Dalmia Bharat Sugar and Industries Limited) will trade at the price pertaining to valuations of Sugar Business which remains housed in it.
Pursuant to allotment of shares in Dalmia Bharat Enterprise Limited the shares of the new entity viz. DBEL would apply for listing of its shares and is hopeful of completing the required processes and list the shares of DBEL by the 1st week of November. Shares of Dalmia Cement (Bharat) Limited (renamed as Dalmia Bharat Sugar and Industries Limited) with integrated sugar business as its core activity would continue to be listed and traded post the record date. It is further clarified that till the record date, the current integrated company "Dalmia Cement (Bharat) Limited" will trade in the changed name of "Dalmia Bharat Sugar and Industries Limited".
(Sourced from Equity Bulls)
