Dalmia Bharat stock surges after subsidiary acquires stake in solar firm

Dalmia Bharat shares surged by 2.93 per cent at Rs 1,862.10 per share on the Bombay Stock Exchange (BSE) in Monday’s intraday deals. The share price of the company has tanked 20.88 per cent in the last six months, while falling 10.71 per cent in the last one year. 

The recent surge, however, came after the cement manufacturing company on Sunday disclosed details of its subsidiary acquiring 26 per cent stake in Solarcraft Power India 23. 

According to the company's exchange filing, Dalmia Bharat's wholly-owned subsidiary Dalmia Cement will acquire 26 per cent equity share capital and compulsory convertible debentures, each, of Solarcraft Power India 23 Pvt Ltd.

The acquisition includes equity shares totalling Rs 10.31 crore, and 8.44 million compulsory debentures worth Rs 8.43 crore. The transaction is subject to customary conditions and expected to be completed within a period of 60 days, the company said in the exchange filing. 

Earlier on June 07, Dalmia Cement had also a acquired 19.18 per cent equity or 1,62,61,200 equity shares of Amplus Kaveri Solar aggregating to Rs 16.26 crore in one or more tranches> This was done to source solar power as a captive consumer for a capacity up to 45.20 MW located in Maharashtra. 

Amplus Kaveri Solar is a special purpose vehicle for setting up solar power project on a captive basis, in Maharashtra.

Dalmia Bharat is the fourth-largest cement manufacturing company in India, with the current capacity pegged at 41.7 million tonne.

In the fourth quarter of fiscal year 2023-23, the company reported a 47.5 per cent year-on-year decline in consolidated net profit to Rs 320 crore, as compared to Rs 609 crore in the corresponding period of the previous year. However, its revenue from operations experienced a 10 per cent year-on-year increase to Rs 4,307 crore, up from Rs 3,915 crore in the same period of the preceding fiscal.

At 11:36 AM; the stock of the company was up 2.33 per cent at Rs 1,852.10 a piece on the BSE. By comparison the BSE Sensex index was up 0.17 per cent.