Dalmia Bharat (DBL) is set to acquire Murli Industries, a Nagpur based cement manufacturer, by infusing ~Rs400cr to revive the company, as per the media sources. It has an integrated cement manufacturing plant of 3 MTPA. As per the resolution plan, DBL will cancel most of the equity of Murli Industries and pay its lenders Rs350cr in cash (resulting almost haircut of 80% for the banks).
Murli Industries had availed loan of Rs900cr and currently its outstanding has increased to Rs1,700cr including interest and penalty. However, since the lending banks have already either written off the loan or have sold it to asset reconstruction companies, the haircut doesn’t hurt the banks. Edelweiss Asset Reconstruction owns 60% of Murli Industries’ debt, followed by Bank of Baroda with 25%. The remaining debt is with other asset reconstruction companies including ARCIL.
DBL plans to infuse capital of Rs69cr in Murli Industries to hold more than 90% stake in the company.
Murli Industries, promoted by Nagpur-based Maloo family, has interest in paper and paperboards, edible oil, pulps, solvent and power, besides cement. The company was referred to National Company Law Tribunal in April, 2017 by Edelweiss ARC.
Dalmia Bharat Ltd ended at Rs 3234.75, down by Rs 6.9 or 0.21% from its previous closing of Rs 3241.65 on the BSE.