The National Company Law Tribunal (NCLT), Guwahati Bench, has approved the merger between Dalmia Cement (North East) and Vinay Cement, both subsidiaries of Dalmia Bharat. The merger aims to streamline operations by consolidating cement and mining activities under one entity, enhancing operational efficiency.
According to the NCLT’s order dated February 21, 2025, the Scheme includes the demerger and transfer of Vinay Cement’s cement and mining business to Dalmia Cement (North East). The merger’s effective date is set as March 31, 2023, in line with Sections 230 to 232 of the Companies Act, 2013. This approval allows Dalmia Cement (North East) to integrate operations and optimize resource use.
Dalmia Bharat has clarified that it is not directly involved in the Scheme, and there will be no share issuance between the companies as part of this arrangement. Post-merger, both subsidiaries will continue operating under Dalmia Bharat’s corporate structure.
On March 12, 2025, Dalmia Cement (North East) received the certified copy of the NCLT order. The completion of additional legal formalities, including filing the certified order with the Registrar of Companies in Guwahati, is required before the merger takes full effect.
The consolidation is expected to improve regulatory compliance and create operational synergies between the two entities. This will also lead to better resource utilization, aligning with Dalmia Cement’s long-term growth objectives.
Despite the merger approval, Dalmia Bharat’s share price has been on a downward trend recently. In the past month, the stock has declined by over 10%, and it has fallen more than 15% over the past six months. On a year-on-year basis, the stock has dropped by 12%, though it has delivered a strong 158% return over the past five years.
The merger fits into Dalmia Bharat’s broader strategy to optimize its subsidiary structure and boost operational efficiencies. By consolidating cement and mining operations under Dalmia Cement (North East), the company aims to cut costs, improve productivity, and strengthen its foothold in the North East region.
Industry analysts suggest that while Dalmia Bharat’s stock may face volatility in the short term, the long-term benefits of this merger could enhance the company’s expansion prospects and overall profitability. The integration of Vinay Cement’s assets with Dalmia Cement (North East) is expected to improve production capacity and supply chain efficiency.