UltraTech and Dalmia Bharat in last leg of race for Binani Cement
Both the bidders have submitted similar bids of ~Rs6,000cr each for the Binani Cement
UltraTech Cement and Dalmia Bharat-Bain Piramal Resurgence Fund consortium are leading the bids for Binani Cement, as per the media sources. Both the bidders have submitted the bid of ~Rs6,000cr each. For the final decision to be made by the creditors, both the bidders are asked to furnish additional details pertaining to their bids.
In addition, UltraTech is required to provide information on a Competition Commission of India (CCI) penalty also (in 2016, CCI had imposed a penalty of Rs1,175cr on account of indulging in cartelisation; it is a contingent liability as of now for the company). Further, earlier this month, UltraTech’s management has indicated that even after the Binani acquisition, company would have only 14MTPA capacity in Rajasthan, while Shree Cement will reach 19MTPA with its ongoing capacity addition of 2MTPA, hence it would not face any hurdles from CCI.
The winner of the bid would get a strong foothold in the western and the northern Indian markets along with a 378MT limestone mine accessibility.
Binani Cement owes ~Rs3,884cr to lenders, including loans acquired by Edelweiss Asset Reconstruction Co. from banks and dues to State Bank of India, Canara Bank and Bank of Baroda.