Nuvoco Vistas completes Rs 1800 cr Vadraj cement acquistion
(You can now subscribe to our
(You can now subscribe to our Economic Times WhatsApp channel
Nirma Group's Nuvoco Vistas Corp has made the Rs 1800 crore payment to lenders led by Punjab National Bank (PNB) and Union Bank of India completing its acquisition of the debt-ridden Vadraj Cement . The money was paid to lenders on Saturday, allowing them to write back their provisions this quarter, two people aware of the details said."The money came to lenders on Saturday and has been distributed. There were some delays due to some litigation but now that everything is settled, the company transferred the money well ahead of the June 24 deadline," said one of the persons cited above.PNB with 25% of the more than Rs 8000 crore debt stands to gain Rs 431 crore, while Union Bank will get Rs 345 crore, calculations by ET show.The acquisition will help Nuvoco Vistas boost its installed cement capacity by over 20% reaching around 31 MTPA and is the company's third acquisition after Lafarge Cement and Emami Cement. A Mumbai bench of the NCLT had approved the acquisition in April.Gujarat-based Vadraj Cement, formerly owned by ABG Shipyard, has a 6 million tonne grinding unit in Surat and will add to Nuvoco Vistas' existing production capacity of 25 million tonne by more than 20%.The acquisition was undertaken through Vanya Corp , a wholly-owned subsidiary of Nuvoco Vistas. Subsequently, Vanya will be merged with Vadraj Cement, according to the resolution plan. Vadraj Cement will ultimately become the wholly-owned subsidiary of the company.Nuvoco's Rs 1,800 crore offer outbid Adani Group at an auction under the court-monitored corporate insolvency, ET had reported in January this year. Adani group-backed Ambuja Cement had partnered with Prudent ARC-backed RKG Fund to acquire the Gujarat-based cement company.Of the Rs 1,800 crore offered by Nuvoco Vistas, Rs 1,725 crore will be used for repaying financial creditors' dues, and the balance is set aside for operational credit, dues to employees, an insolvency resolution process costs.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New Indian Express
13 minutes ago
- New Indian Express
Release Rs 4.5K crore rural infra fund, CM Stalin urges Union Finance Minister Nirmala Sitharaman
CHENNAI: Chief Minister MK Stalin on Tuesday urged Union Finance Minister Nirmala Sitharaman to give early approval for releasing Rs 4,500 crore under the NABARD's Rural Infrastructure Development Fund for the current financial year and Rs 350 crore under the Fisheries Infrastructure Development Fund (FIDF) for the expansion of the Kolachel fishing harbour. Tamil Nadu Finance Minister Thangam Thennarasu handed over Stalin's letter in this regard to Sitharaman in New Delhi. He was accompanied by DMK parliamentary party leader and MP Kanimozhi. Both met Sitharaman in the Parliament House. Referring to Thennarasu's meeting with Sitharaman, Stalin wrote on X platform, 'The fishermen from Kanniyakumari district met me and requested to start the works on the extension of Colachel harbour soon. I hope the union minister will accept this fair request from Tamil Nadu and release the funds necessary.' Thennarasu is in New Delhi to attend the crucial meeting of the state ministerial committee on Wednesday to put forth the union government's proposal for sweeping GST reforms that will slash tax rates, which may lead to a reduction in prices of items commonly used by the public.
New Indian Express
13 minutes ago
- New Indian Express
MTC to privatise ticket collection on diesel buses
CHENNAI: A month after privatising ticket collection in recently-launched electric buses under a gross cost contract (GCC), the MTC has decided to privatise ticket collection for its regular diesel buses running from 31 depots within and outside Chennai. A total of 1,172 conductors will be hired through private agencies, with a monthly salary of Rs 26,750, inclusive of insurance, PF and other benefits. Another 1,020 drivers will be recruited to operate regular buses across the city. All tickets are to be issued only through electronic ticketing machines. Tenders have been invited for appointing a total of 2,192 drivers and conductors. There are 3,000 vacancies for the posts of driver and conductor in MTC, according to trade unions. At present, out of 3,200 buses, nearly 400 remain off the road due to crew shortages, lack of spare parts and other reasons. The induction of 2,192 additional staff is expected to bring around 300 more buses into operation. MTC Managing Director T Prabhushankar said temporary conductors have already been engaged in ticket collection for some time. 'With a large number of drivers and conductors retiring in recent months, we decided not to cut services,' he said.
Hans India
13 minutes ago
- Hans India
YSRTUC vows to oppose VSP privatisation
Guntur: The YSR Trade Union Congress categorically rejected the privatisation of the steel plant and committed to a fierce struggle alongside workers and public unions to protect their livelihoods, said YSRTUC president Poonuru Gautham Reddy. Addressing the media at the YSRCP central office in Tadepalli, he declared that the previous YSRCP government's staunch opposition had stalled privatisation for five years, but the coalition government's inaction has worsened workers' plight. He demanded Chief Minister Chandrababu Naidu, Deputy Chief Minister Pawan Kalyan, and Minister Lokesh honour their election promises to save the plant, accusing them of indifference as the NDA accelerated privatisation of 32 departments by September 9, 2025. The coalition's policies have crippled the plant, employing 20,000 workers: 1,150 have been removed via Voluntary Retirement Scheme (VRS), with notices for 1,000 more, totalling 8,000-9,000 layoffs across all categories in a year. Salaries remain unpaid since September 2024, benefits like leave encashment, incentives, LTC, and LLTC have been scrapped, and electricity rates in plant quarters have surged from 49 paise to Rs 8 per unit, displacing workers. He condemned dismantling of a 1,300-day protest tent and erecting a police post to suppress dissent, contrasting this with YSRCP's support under former Chief Minister YS Jagan Mohan Reddy, who engaged workers directly, passed an Assembly resolution against privatisation, wrote to the Centre to convert loans into equity, and refrained from filing cases against protesters.
