Dalmia Bharat Refractories has sold an 11.11% stake in RHI Magnesita India for Rs 826 crore via a block deal. SBI Mutual Fund led the buyer group, acquiring an 8.07% share. The deal attracted strong institutional interest, with RHI Magnesita shares rising nearly 3% following the transaction.
Dalmia Bharat Refractories has significantly reduced its investment in RHI Magnesita India by offloading an 11.11% stake in an open market block deal on the National Stock Exchange. The transaction involved the sale of over 22.9 million shares at a price of Rs 360 per share, totaling Rs 826 crore. Following this sale, the company’s ownership in the refractory manufacturer has decreased from 12.54% to 1.43%.
Strong Institutional Demand
The block deal saw heavy participation from domestic institutional investors, which helped absorb the large volume of shares offered by Dalmia Bharat Refractories. SBI Mutual Fund emerged as the largest buyer in this deal, purchasing approximately 16.6 million shares for Rs 600 crore, effectively securing an 8.07% stake in the company. Other institutional participants included Bandhan Mutual Fund and Nippon India Mutual Fund. Additionally, Clarus Capital, an affiliate of the investment firm ChrysCapital, also acquired shares, further diversifying the company’s institutional shareholder base.
Market Reaction and Business Context
Investors reacted favorably to the change in ownership, with RHI Magnesita India shares gaining nearly 3% during the trading session to close at Rs 378.60. RHI Magnesita India is a prominent player in the refractory market, supplying essential heat-resistant materials used primarily in the steel and cement industries. The strong absorption of the stake by mutual funds suggests confidence in the company’s market position and its role in supplying key industrial inputs.
For investors, this shift represents a move from a strategic investor toward a broader base of institutional shareholders. While the transaction went through without impacting the stock price negatively, investors typically watch for how major ownership changes affect governance or future strategy. The company's performance remains closely tied to the cyclical demands of the heavy industrial sector, particularly steel production. Going forward, tracking the company’s operational margins and its ability to maintain its market share against competitors will be key for shareholders.