NCLT approves Dalmia Bharat Sugar’s demerger of non-core units

The National Company Law Tribunal (NCLT) in Chennai sanctioned a scheme of arrangement between Dalmia Bharat Sugar and Industries Limited (DBSIL) and Dalmia Bharat Refractories Limited (DBRL) on September 12, 2025. This scheme involves the demerger of DBSIL's DMC Unit and GT Unit into DBRL. The NCLT order, approving the scheme, was made available on September 19, 2025.

The rationale is to segregate non-core businesses from the sugar business, allowing for efficient and focused management of each unit and increased flexibility for value extraction and fundraising. The fair share exchange ratio for the demerger is set at one equity share of DBRL of INR10 each for every 48.18 equity shares of DBSIL of INR2 each. The appointed date for the scheme is July 1, 2023.

The NCLT noted that the scheme is not detrimental to the interest of the company's members, and all statutory compliances have been fulfilled. The Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) had issued observation letters dated July 30, 2024, and August 2, 2024, respectively, outlining various conditions that the petitioner companies are directed to comply with.