Dalmia Bharat has approved a proposal to raise up to Rs 4,000 crore through a range of financial instruments as part of its long-term growth strategy aimed at expanding its cement manufacturing footprint across India.
The capital infusion will support the company’s objective of increasing its production capacity to 110–130 million ton per annum (MTPA) by FY31 through a combination of greenfield projects, brownfield expansions and strategic acquisitions. In the near term, Dalmia Bharat is targeting a capacity of 75 MTPA, up from its current installed capacity of approximately 49.5 MTPA, strengthening its presence in eastern, northeastern and southern India.
To facilitate the fund raise, the company’s Board has approved multiple financing options, including equity shares, Qualified Institutional Placements (QIPs), Global Depository Receipts (GDRs), American Depository Receipts (ADRs), Foreign Currency Convertible Bonds (FCCBs), convertible debentures and other eligible securities.
The company expects sustained growth in India’s cement sector, driven by continued public infrastructure investments, increasing private capital expenditure and rising housing demand supported by rapid urbanisation. It anticipates domestic cement demand to expand at a compound annual growth rate of 6–7 per cent over the coming years.
According to the company, the funds raised will be utilised for capital expenditure, repayment of existing debt, working capital requirements and investments in subsidiaries, supporting its next phase of expansion and strengthening its long-term growth strategy.