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Demerger News: Dalmia Bharat Sugar and Industries Ltd, a leading sugar and specialty chemicals manufacturer, has announced the demerger of its refractory business into a separate listed entity.

The new entity, Dalmia Bharat Refractories, will focus on the magnesia carbon refractory business, enabling a sharper operational focus and unlocking value for shareholders.

The demerger became effective on October 9, 2025. As part of the restructuring, Dalmia Bharat Sugar will spin off its refractory division into a new company named Dalmia Bharat Refractories Limited (DBRL).

According to the company’s filing, eligible shareholders will receive one fully paid-up equity share of face value Rs 10 of DBRL for every 48.18 shares of Rs 2 each held in Dalmia Bharat Sugar. The record date for determining shareholder eligibility has been fixed as October 31, 2025 (Friday).

Shares of Dalmia Bharat Sugar will trade ex-demerger on October 31 to enable fair value determination of both entities. The stock exchanges will hold a special trading session on the same day, while normal trading will resume at 10 AM.

Post demerger, shares of Dalmia Bharat Refractories will be credited to eligible shareholders’ Demat accounts and will remain frozen until the listing. The listing date will be announced later after the allotment process is completed.

As of 11:15 AM on October 29, shares of Dalmia Bharat Sugar were trading marginally higher at Rs 364, up Rs 1.25 or 0.34 per cent on the BSE.

Dalmia Bharat Sugar and Industries Ltd is among India’s leading sugar producers, with business interests spanning sugar, ethanol, specialty chemicals, refractory products, and hand sanitizers. The company is part of the BSE Smallcap index and commands a market capitalization of Rs 2,875.77 crore.

Abhay Shukla is a Senior Sub-Editor at Zee Business, where he covers the stock markets, corporate news, personal finance, technology, and auto sectors.

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