Dalmia Bharat Greenlights Massive ₹40,000 Crore Fundraising to Fuel Expansion Ambitions

Dalmia Bharat Ltd is making headlines with its board’s approval for raising up to ₹40,000 crore through a fresh issuance of securities, aiming to supercharge its next phase of growth. The board met on May 30 to consider a proposal that will allow the company to tap both domestic and global markets through a mix of equity shares, equity-linked securities, convertible warrants, and other financial instruments. The fundraising may take place via qualified institutional placement, private placement, public issue, preferential issue, or any combination permitted under SEBI regulations.

 

This move comes as Dalmia Bharat sharpens its focus on capacity expansion and market leadership in the cement sector. The company recently reached a milestone of 49.5 million tonnes per annum (MTPA) in installed cement capacity and announced a further 6 MTPA expansion, targeting new markets in Western India. Despite subdued profitability in FY25 due to softer demand, Dalmia Bharat’s management remains bullish, citing strong GDP growth projections, higher government capex, and rising disposable incomes as key drivers for cement demand.

 

Financially, Dalmia Bharat reported a consolidated Q4 income of ₹4,184 crore and a net profit of ₹439 crore, with improved margins thanks to lower costs. The company’s net debt to EBITDA ratio stands at a comfortable 0.3x, giving it room to leverage for growth. Analysts remain positive, projecting robust volume and earnings growth over the next few years, supported by continued sector consolidation and operational efficiencies.

 

Investors and market watchers will be closely tracking how this mega fundraising shapes Dalmia Bharat’s trajectory in India’s booming infrastructure landscape.

 

Sources: Economic Times, Moneycontrol, Business Today