Dalmia Bharat Refractories Unlisted Share
Dalmia Bharat Refractories Ltd
INE0EB001012
Listing Status: DRHP Not Filed
About Dalmia Bharat Refractories Unlisted Share
Overview of Dalmia Bharat Refractories Unlisted Share
Dalmia Bharat Refractories Limited is a subsidiary of Dalmia Bharat Group. DBRL is a leading manufacturer of refractory products in India. DBRL operates primarily in the refractory industry, which plays a crucial role in sectors such as steel, cement, glass, non-ferrous metals, and petrochemicals. Refractory products are vital for lining furnaces, kilns, reactors, and other high-temperature equipment to withstand extreme heat and chemical corrosion.
In a strategic move to boost operational efficiency and growth, DBRL has divested its refractory business, retaining only its magnesia carbon division and China manufacturing. The company is now concentrating on its Magnesia Carbon business, branded as DMC. DBRL has recently divested from its core refractory business and is currently not actively seeking new avenues for growth to enhance shareholder value. Instead, the company is directing its focus towards investments in the cement and construction material industries, and startups. DBRL has announced recent investments in Dalmia Bharat Limited and HippoStores Technology Private Limited, to maximize shareholders return through the growth of these companies.
Corporate Restructuring:
- DBRL is formed by the amalgamation of the refractory business of the Dalmia group from 3 units of Dalmia-OCL: Dalmia Refractories Ltd, Dalmia Cement Bharat Ltd and Refractory Unit and GSB India.
- DBRL underwent significant corporate restructuring, consolidating its Indian refractory business into Dalmia OCL, which was later acquired by RHI Magnesita. This acquisition involved a combination of cash and equity shares, resulting in DBRL holding a 13.27% stake in RHI Magnesita.
- DBRL acquired Dalmia Mining and Services Private Limited, while divesting its stake in Dalmia GSB Refractories GmbH, Germany, to RHI Magnesita Deutschland AG.
- Dalmia Cement (Bharat) Ltd sold its 42.36% shareholding in DBRL to Sarvapriya Healthcare Solutions Private Limited for 800Cr, while the Total Market Cap being 750Cr.
- DBRL, in collaboration with Himadri Speciality Chemicals Limited, obtained approval from the NCLT for the joint acquisition of Birla Tyres Limited through insolvency proceedings.
- Dalmia Bharat Sugar and Industries (DBSIL) Ltd siad it will demrge it's refactory unit Dalmia Magnesite Corportion (DMC) and Tour service Govan Travel (GT) and it will get vested into Dalmia Bharat Refractories (DBRL). DBSIL share holders will receive 1 share DBRL for every 39 shares of DBSIL.
To read more about their corporate restructuring, please visit: https://altiusinvestech.com/blog/detailed-analysis-of-dalmia-bharat-refractories-limiteds/
Insights of Dalmia Bharat Refractories Unlisted Share
Financial Insights:
While revenue growth and PAT surge indicate positive aspects of the company's performance, the significant decline in EBITDA and the negative PBT raise concerns. The exceptional item is based on profit on disposal of refractory business on slump sale basis. Decline in EBITDA indicates lower operational effeciency leading to a massive decline in PBT.
Particulars | 31st March, 2023 | 31st March, 2022 | Y-o-Y % increase |
Revenue | 345 | 300* | 15% |
EBITDA | 25 | 47 | -46% |
PBT | -10 | 35 | -1300% |
Exceptional Items | 1,760 | - | |
PAT | 1,307 | 23 | 5620% |
EPS | 302 | 5 |
*The revenue for FY22 is calculated only for the continuing operations, i.e. only from the business that has been retained post the sale to RHI Magnesita.
The table below shows the calculation of the total worth of the business taking into account its liquid assets, long term investments and the remaining existing business.
The worth of business is calculated on the basis of 1.5x of previous year's revenue, that takes it to be 525Cr. The basis for 1.5x is is attributed to benchmarking against competitors, who are currently valued at twice the revenue. The relatively lower multiple is influenced by factors such as reduced market share, operational losses, and recent divestment activities. With cash equivalents and marketable securities comprising a substantial portion of the company's total assets, it indicates a strong liquidity position.
Additionally, holding shares in RHI Magnesita and Dalmia Bharat demonstrates strategic investments in related sectors. The book value per share of 680 suggests an undervalued position compared to the current market price (CMP) of 171. Considering the steep discount of 75%, it's evident that the market has not fully priced in the growth potential and asset value of the company.
Particulars | FY23 (in cr.) | |
Cash & Cash equivalent balance | 216 | |
Marketable securities | ||
2.7Cr shares of RHI Magnesita | 1702 | |
6.9Lac shares of Dalmia Bharat | 138 | |
Mutual Fund | 425 | 2265 |
Worth of existing Business | 525 | |
Total | 3006 | |
Book Value per share | 680 | |
CMP | 171 | |
Discount | 75% |
DBRL currently lacks strategic influence in the decision-making process of RHI Magnesita, despite their significant stake in the company. This situation suggests the potential for DBRL to divest its stake in RHI, which could bolster the company's cash reserves. This will positively impact DBRL's financial position in the near term.
Sale of Indian Refractory Business
Prior to the sale, the Indian business of DBRL reported revenue of INR 1,100 crore and expenses of INR 1,151 crore, indicating operational losses. However, despite this loss, the company proceeded with the sale of the business, valuing it based on 27 times of DBRL EBIDTA.
Financial performance of the Indian business of DBRL | FY23 (in cr.) | |
Revenue | 1100 | |
Expense | 1151 | |
Profit before exceptional item | -51 | |
Exceptional item | 26 | |
Profit after exceptional item | -25 |
The fair value of shares received as part of the sale of the Indian business to RHI Magnesita amounted to INR 1,707 crore, with an additional INR 484 crore received in cash. The net value of assets and liabilities transferred as part of the business amounted to approximately INR 400 crore. Consequently, the ultimate gain realized from the sale of the business amounted to INR 1,759 crore.
In Cr. | |
Particulars | As on Jan 4th, 2023 |
Fair value of shares received for Dalmia OCL Limited | 1707 |
Cash Consideration | 393 |
Cash Consideration for working capital | 91 |
Total consideration | 2191 |
Less: Carrying amount of net assets transferred (refer below) | -400 |
Total Assets | 1038 |
Total Liabilities | 638 |
Less: expenses towards business transfer | 32 |
Total Gain on disposal of refractory business | 1759 |
In the fiscal year 2023, DBRL successfully divested its entire Indian operations to RHI Magnesita, representing a significant portion of its revenue at 27%. Beyond this transaction, DBRL maintains a robust international clientele, contributing to the remaining 73% of its revenue. The company is strategically focused on expanding its global footprint and exploring opportunities for growth in overseas markets.
In Crores | |||
Segment | FY 2022-23 | FY 2021-22 | YoY% increase |
Domestic | 96.5 | 88 | 9% |
International | 262 | 213 | 23% |
Total | 358.5 | 301 | 19% |
Share price journey:
On March 1st, 2022, born from the merger of Dalmia Cement (Bharat) Ltd. - Refractory Division, Dalmia Refractories Ltd & GSBIndia. The shareholders of Dalmia Retractory in the unlisted market got shares of Dalmia Bharat Refractory.Those holding 100 shares of Dalmia Refractory got 768 shares of Dalmia Bharat Refractory. This transaction resulted in falling of share price from ₹829 per share to ₹124 per share.
Financial Charts of Dalmia Bharat Refractories Unlisted Share
Balance Sheet of Dalmia Bharat Refractories Unlisted Share
Profit and Loss of Dalmia Bharat Refractories Unlisted Share
Ancillary of Dalmia Bharat Refractories Unlisted Share
Ratio Analysis
Peers
Industry Benchmarking
Segment Revenue
Subsidaries
Security Allotment
Corporate Governance
Team Management Details
FAQs of Dalmia Bharat Refractories Unlisted Share
-
How to buy Dalmia Bharat Refractories Ltd?
Below are three ways through which you can purchase Dalmia Bharat Refractories Ltd:
- We at Altius Investech have many actively traded scripts and are market makers of unlisted shares. To check out all the unlisted shares traded. (Click on link). To submit a request to buy Dalmia Bharat Refractories Ltd, please click on the trade button at the top of this page
- Additionally, you can download our app from your play store or app store, register on our application, and engage in active trading there.
Download the Altius App here https://onelink.to/hf4m72 - You can also reach out to us at : +91 8240614850 / +91 8240861716
-
How to sell Dalmia Bharat Refractories Ltd?
Below are three ways through which you can sell Dalmia Bharat Refractories Ltd:
- We at Altius Investech have many actively traded scripts and are market makers of unlisted shares. To check out all the unlisted shares traded. (Click on link). To submit a request to sell Dalmia Bharat Refractories Ltd, please click on the trade button at the top of this page
- Additionally, you can download our app from your play store or app store, register on our application, and engage in active trading there.
Download the Altius App here https://onelink.to/hf4m72 - You can also reach out to us at : +91 8240614850 / +91 8240861716
-
What is the price of Dalmia Bharat Refractories Ltd?
We provide a two way quote on all the shares we deal in. Your buy price for Dalmia Bharat Refractories Ltd is ₹267 and your sell price for Dalmia Bharat Refractories Ltd is ₹245. The price is based on our estimates and market conditions.
-
What is the lock-in period of Dalmia Bharat Refractories Ltd?
The lock-in period for Dalmia Bharat Refractories Ltd varies depending on the category of investors:
- For retail Investors, HNIs, or Body Corporates, the lock-in period is 6 months from the date of the listing of Dalmia Bharat Refractories Ltd
- For Venture Capital Funds or Foreign Venture Capital Investors, there is a lock-in period of 6 months from the date of acquisition of Dalmia Bharat Refractories Ltd
- For AIF-II (Alternative Investment Funds - Category II), there is no lock-in period
August 2021 saw the introduction of this regulation by SEBI. The purpose of the regulation change, which lowered the lock-in period from a year to six months, was to incentivize additional investments in firms getting ready for initial public offerings, or IPOs. Since its introduction, a number of Portfolio Management Services (PMS) have advised their clients to purchase Pre-IPO shares in order to take advantage of the advantages associated with early-stage investments. This reduction in the lock-in period is considered as a significant step forward.
-
How is the Dalmia Bharat Refractories Ltd price calculated?
Fundamental & Comparative valuation models and the forces of demand and supply in the market for unlisted shares dictate the price. These prices are based on our estimates and transaction history of Dalmia Bharat Refractories Ltd. The price is also determined from the most recent funding round for Dalmia Bharat Refractories Ltd. This provides us with a benchmark valuation, offering a clear indication of the company's current market value as perceived by investors and industry experts.
-
What are the lot sizes of Dalmia Bharat Refractories Ltd?
We can generally arrange lot sizes starting with an investment of INR 20,000. To confirm the lot sizes of Dalmia Bharat Refractories Ltd with us kindly click here.
-
What are the financials of Dalmia Bharat Refractories Ltd?
The financials of Dalmia Bharat Refractories Ltd which includes the P/L of Dalmia Bharat Refractories Ltd and the Balance Sheet of Dalmia Bharat Refractories Ltd is in the financials section (Click on link).
-
Where can I find the annual report of Dalmia Bharat Refractories Ltd?
The annual report of Dalmia Bharat Refractories Ltd is available in the annual report section (Click on link).
-
Is buying Dalmia Bharat Refractories Ltd legal in India?
Yes, buying and selling unlisted shares in India is indeed 100% legal. This activity is regulated and governed under the guidelines provided by the Securities and Exchange Board of India (SEBI). Investors and traders must adhere to these regulations and guidelines to ensure compliance with legal and financial standards. It's important for participants in the unlisted share market to be aware of and understand these regulations to engage in transactions legally and securely.
-
Short-term Capital Gain taxes to be paid on Dalmia Bharat Refractories Ltd?
When you sell unlisted shares within a period of two years from the date of acquisition, any profit earned from the sale is classified as Short-term Capital Gain (STCG). This gain is then added to your total income for that financial year. The tax on this short-term capital gain is calculated based on your applicable individual income tax slab rates. Therefore, the rate at which you will pay tax on the STCG from unlisted shares depends on your total income, including this gain, and the tax slab it falls under as per the prevailing income tax laws in India. It's important for investors to consider these tax implications when engaging in transactions involving unlisted shares.
-
Long-term Capital Gain taxes to be paid on Dalmia Bharat Refractories Ltd and how are They Taxed?
Long-term Capital Gains (LTCG) on unlisted shares in India refer to the profits earned from the sale of unlisted shares that have been held for more than two years. The key aspects of LTCG on unlisted shares include:
- Tax Rate: LTCG on unlisted shares is taxed at a rate of 20%.
- Indexation Benefit: This is a significant advantage for investors. Indexation allows for adjusting the purchase price of the shares for inflation, which can reduce the taxable gain.
- Importance for Investors: Understanding LTCG is crucial, especially for High Net-worth Individuals (HNIs) and retail investors, as it impacts their investment strategy and tax planning. Knowing these details helps in making informed investment decisions.
- Calculation: LTCG is calculated by subtracting the indexed cost of acquisition (the purchase price adjusted for inflation) from the sale price of the shares. The profit thus calculated is subject to a 20% tax.
- Applicability: LTCG tax is applicable to profits from the sale of unlisted shares held for more than two years.
- Relevance: This tax is particularly relevant to investors in the unlisted share market, including those considering selling their holdings after a period of more than two years.
-
Applicability of Taxes on Dalmia Bharat Refractories Ltd once it is listed?
When shares initially bought in the unlisted market become listed, the taxation rules change significantly if these shares are sold through a stock exchange. Here's what investors need to know:
Transition to Listed Market Tax Rates: Once unlisted shares are listed on the stock exchange and subsequently sold, the tax rates applicable to listed securities come into effect. This shift means that the favourable tax treatments for listed shares, as per the prevailing tax laws, will apply.
Taxation Based on Holding Period: The crucial factor in determining the type of capital gains tax (Long-term or Short-term) is the holding period of the shares. Importantly, this period is calculated from the original purchase date when the shares were unlisted.
Long-term vs. Short-term Capital Gains: If the shares are sold after being held for more than one year from the date of purchase (including the period when they were unlisted), they are subject to Long-term Capital Gains (LTCG) tax.
Conversely, if sold within one-year, Short-term Capital Gains (STCG) tax rates apply.
Significance for Investors: This information is vital for investors in the unlisted market, as it impacts their tax planning and decision-making process. Understanding these nuances ensures that investors can strategically plan the sale of their shares post-listing to optimize tax implications.
Advice for Investors: It's advisable for investors to keep a record of their purchase dates and monitor the listing dates closely. Additionally, staying updated with the latest tax regulations or consulting with a financial advisor is recommended for accurate tax calculations and compliance. -
How does Altius Investech source Dalmia Bharat Refractories Ltd?
At Altius Investech, our approach to sourcing Boat Unlisted Share (Imagine Marketing) involves a strategic and direct method. Primarily, we acquire these shares from the below key groups:
Employees of the Company: Employee stock option plans (ESOPs) or other compensation packages frequently include shares for firm employees. For a various reasons, such as including portfolio diversification or financial considerations, some of these employees may eventually choose to sell their shares. We engage with these employees, providing them a platform to sell their shares.
Initial Investors: These are the angel or early-stage investors who provided capital to the business in its early stages. These original investors may look to sell all or part of their ownership position in the company as it develops and flourishes. This might be done for various reasons such as in order to maximise their investment, reallocate resources, or make other calculated financial decisions.
Funding rounds and VC funds: Altius Investech sources the shares from private placement rounds in which private companies seek to obtain capital from the market. Through our platform, venture capital funds can liquidate their shares and we receive the inventory from them when they decide to sell a portion of their ownership through block trades.
By establishing connections with these groups, Altius Investech guarantees our clients a steady and dependable supply of Boat Unlisted Share (Imagine Marketing). This process not only makes it easier for employees and initial investors in liquidating their assets, but it also gives our clients access to shares that aren't often found on the open market. Our platform effectively facilitates a win-win situation for both buyers and sellers. -
How to trust Altius Investech before buying Dalmia Bharat Refractories Ltd from its platform?
Altius Investech stands at being India's fastest growing and leading marketplace for buying and selling unlisted shares. We believe in enabling access to alternative sources of investments at lower entry barriers to private equity investments.
With more than 25 years of experience, Altius Investech has carved a niche in the financial market by serving more than 8000 clients. The incredible journey is further highlighted by the vast number of transactions that Altius Investech has facilitated transactions that have already exceeded 300 crores.
For investors Altius Investech curates investment opportunities in companies at reasonable valuations which are on the verge of an IPO leading to massive value unlocking. Investments are backed by thorough research and sound investment thesis, with a time bound exit plan.
For ESOP Shareholder and existing Investors, we assist them to liquidate their shares even if they are not publicly traded by creating a platform where we find the right buyers and sellers for the best prices.
Altius Investech have been featured in top media news outlets like Economic Times, Financial Express, Money control. Check out about us on these - leading publications (Click on link) Our journey over these years has not just been about numbers; it's been about building trust and reliability.
We at Altius Investech are dedicated to upholding the greatest levels of ethics and transparency, making sure that your investment experience is not only profitable but also safe and reliable.
Press of Dalmia Bharat Refractories Unlisted Share
Featured Blogs of Dalmia Bharat Refractories Unlisted Share
Annual Report of Dalmia Bharat Refractories Unlisted Share
Company Information of Dalmia Bharat Refractories Unlisted Share
Stay Connected.
Registered Address
73A, GC Avenue, Kolkata -13Corporate Address
Y-19, 90 DEGREES Magnus, EP Block,Sec V, Kolkata 700091Chennai Office
19/10, Guru Vappa Chetty Street, Chintadripet, Chennai - 600002
Dubai Office
2701, Executive Tower G, Business Bay, Dubai, UAE
Andhra Pradesh & Telangana Office
54-19-25/1, Flat no.101, Sai Residency, Nelson Mandela Park Road, LIC Colony, Vijayawada (Urban), Andhra Pradesh - 520008Altius Investech