Dalmia Bharat Plans To Raise Funds Worth ₹4,000 Crore

Dalmia Bharat has announced an ambitious expansion plan, which includes raising up to ₹4,000 crore to achieve a cement manufacturing capacity of 110-130 million tonnes per annum (MTPA) by FY31.

Currently, India's cement industry has only two companies with capacity exceeding 100 MTPA, UltraTech Cement (205.5 MTPA) and Ambuja Cements (109 MTPA).

Why Is Dalmia Bharat Raising Funds?

The company said the proceeds will be used for meeting capital expenditures, repayment or prepayment of existing debt, working capital requirements, investments in subsidiaries, and for other general corporate purposes.

The fundraising may include:

• Qualified Institutional Placements (QIPs)

• Equity shares

• Global Depository Receipts (GDRs)

• American Depository Receipts (ADRs)

• Foreign Currency Convertible Bonds (FCCBs)

• Convertible debentures

• Preference shares

• Other eligible securities

The plan received the board's approval on 23 May 2026. It will now be put before the company's shareholders for finalisation at its upcoming Annual General Meeting (AGM).

What Is The Company's Plan For Capacity Expansion?

Dalmia Bharat currently operates with a cement manufacturing capacity of around 49.5 MTPA.

Its expansion targets include:

• 66.7 MTPA capacity by FY28

• 75 MTPA capacity in the medium term

• 110-130 MTPA capacity by FY31

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Management said the strategy is aligned with expected growth in India's cement demand, which the company forecasts will expand at a CAGR of 6-7% over the coming years.

As part of its Phase-II expansion programme, Dalmia Bharat has already announced investments of more than ₹6,800 crore to add 12 MTPA of capacity through projects in Belgaum, Pune, and Kadapa.

Apart from organic growth, Dalmia Bharat is actively pursuing acquisitions to accelerate expansion. The company recently signed an agreement to acquire the cement business of Jaiprakash Associates for ₹2,850 crore.

Source:

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