Dalmia Bharat Sugar (DBSIL) Gets NCLT Nod for Baghauli Revival Plan

30 Nov 2023 , 03:31 PM

Dalmia Bharat Sugar (DBSIL) shares rose 2.3% on November 30 after the National Company Law Tribunal (NCLT) approved the company’s resolution plan for Baghauli Sugar and Distillery.

DBSIL submitted the resolution plan under the Corporate Insolvency Resolution Process (CIRP) of the Insolvency and Bankruptcy Code (IBC) for the revival of Baghauli Sugar and Distillery. The NCLT Allahabad Bench granted approval, pending clarification from the Supreme Court based on previous orders.

At the time of writing, the stock was trading at Rs 457.80 apiece on the NSE, marking a 0.36% decrease.

Baghauli Sugar, previously a Sahara Group company and wholly owned subsidiary of Sahara Prime City, ceased operations in 2016. DBSIL’s resolution plan involves infusing Rs 140.19 crore through equity and an unsecured loan, making Baghauli Sugar a wholly-owned subsidiary.

Dalmia Bharat Sugar and Baghauli Sugar operate in the same industry. The acquisition and revival of Baghauli Sugar would enable DBSIL to expand its capacities in Uttar Pradesh.

DBSIL currently has a capacity of 38,450 TCD (tonnes of cane crushed per day) and is fully integrated with 123 MW of cogeneration capacity, distilleries of 710 kiloliters per day, and incineration boilers.

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