Future tense for many past-perfect IBC deals: After JSW setback, past insolvency resolutions under the lens
A Supreme Court ruling impacts past insolvency resolutions. Some deals, similar to the JSW-Bhushan Power case, face scrutiny. These resolutions involved deferred payments or quasi-equity instruments. Ruchi Soya, Jaypee Infratech, and others are under observation. Experts report increased inquiries post the judgement. Patanjali Foods claims the ruling does not affect its Ruchi Soya acquisition.
Tired of too many ads?
Remove Ads
Tired of too many ads?
Remove Ads
New Delhi: Past IBC resolutions of some distressed companies could be questioned in the aftermath of the recent Supreme Court ruling striking down JSW Steel 's acquisition of Bhushan Power and Steel (BPSL), showed ET's analysis of more than a dozen insolvency cases having some similarity with the JSW-BPSL deal.Perusal of the National Company Law Tribunal (NCLT) records revealed similar features in at least five of these cases, wherein payout to lenders by the acquirers were either deferred or made through quasi-equity instruments , and not directly in cash.While the SC judgement did not explicitly term quasi-equity instruments illegal, it demanded proof from JSW Steel that funds promised through these instruments actually came into BPSL. Of its offer of ₹19,300 crore, JSW Steel had committed to contribute ₹8,450 crore by subscribing to compulsorily convertible debentures (CCDs) of a special purpose vehicle (SPV) that would later be merged with BPSL. The top court was presented with a board resolution showing allotment of CCDs but it was not impressed by the move.IBC resolutions of Ruchi Soya, Jaypee Infratech, Jhabua Power, Essar Power MP, and KSK Mahanadi Power had built-in clauses for deferred payments to lenders over the course of the resolution plan or involved quasi-equity instruments, as per resolution plans filed with NCLT. Insolvency experts said they have been flooded with enquiries since the Supreme Court judgement. Ruchi Soya Industries (RSI) was acquired by Patanjali Ayurved in 2019. Of the total resolution offer of ₹4,350 crore made by Patanjali Ayurved to Ruchi Soya's creditors, Rs 900 crore was to be paid by subscribing to preference shares and non-convertible debentures (NCDs) of an SPV.Patanjali Foods claimed the Supreme Court judgement has 'no bearing' on its acquisition of Ruchi Soya. "The underlying issues of fact and law are substantially different in both matters," it said. "The resolution in the case of RSI stands fully implemented nearly six years ago and all payments and obligations under the plan were fulfilled in accordance with the terms approved by NCLT and NCLAT.""Specifically in the subject matter (BPSL), the effective date stood breached and was never formally extended by the tribunals. This was not the case in the acquisition of RSI," it said in a statement.The much-publicised Jaypee Infratech insolvency for which Suraksha Realty's ₹20,000-crore resolution offer got approval of creditors and NCLT, involved paying ₹1,280 crore by subscribing to NCDs.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
&w=3840&q=100)
Business Standard
7 minutes ago
- Business Standard
Higher sales realisation, volume growth boost cement firms' earnings in Q1
Driven by increased government spending on key infrastructure projects, leading cement manufacturers reported a solid performance in the June quarter with a double-digit volume growth and higher sales realisation. Cement makers expect the trend of an overall improvement to continue in FY26. Moreover, lower input costs, such as a decline in coal and petcoke prices, along with stable diesel costs, also helped in improvement on Ebitda terms, which faced a rough patch in FY25. Leading cement maker UltraTech Cement reported a volume growth of 9.7 per cent to 36.83 million tonnes (MT), helped by acquisitions of India Cements and the cement business of Kesoram Industries. Similarly, Adani Group firm Ambuja Cements also reported its highest-ever cement sales volume of 18.4 MT and its highest-ever quarterly revenue at Rs 10,000 crore. Sales volume of Birla Corporation rose 9.36 per cent to 4.79 MT, and Nirma Group firm Nuvoco Vistas Corp reported a sales volume of 5.1 MMT in Q1. JK Lakshmi Cement's sales volume increased nearly 10 per cent. However, some companies, like Shree Cement, saw their volumes decline due to geopolitical tensions in the northern region. Dalmia Bharat's sales volume fell 5.8 per cent to 7.4 MT, impacted by the discontinuation of tolling volumes from Jaypee, while Ramco Cements reported a 7 per cent decline due to early monsoon rains in Kerala. In the earnings conference call, Ambuja Cement CEO Vinod Bahety said momentum is built on various factors, including strong value focus, robust volume growth, price improvement and deeper channel engagement. He expected the trend of price improvement and overall volume improvement to continue. UltraTech CFO Atul Daga in the earnings call said: "The government capex programme has shown a marked improvement in the first two months of this quarter on the low base of April-May 2024. We are seeing rising state government spending. States like Bihar, Andhra, Gujarat, and Maharashtra are doing much better than the other states year-on-year". The industry was also supported by the cement price increase. The all-India average cement price increased by 7 per cent year-on-year in June 2025 to Rs 355 per 50 kg bag. "In Q1 FY2026, the prices were up 7 per cent year-on-year at Rs 360/bag on account of price hikes undertaken by cement companies amid healthy demand. In FY2025, cement prices declined by 7 per cent year-on-year to Rs 340/bag," according to an Icra report. Moreover, in July, coal prices declined by 21 per cent year-on-year to USD 103/MT, and petcoke prices fell 3 per cent year-on-year to Rs 10,860/MT. "In 4M FY2026, the prices of coal were lower by 10 per cent year-on-year, while petcoke and diesel prices were stable on a year-on-year basis," Icra said, expecting the margins likely to "improve by 80-150 bps to 16.3-17.0 in FY2026 due to expected hike in cement prices and stable input costs". In the near term, the demand is expected to be flat due to the monsoon in the second quarter. However, companies are assured of growth after that, and aim to achieve a growth of around 7 per cent in FY26. "The cement demand grew by almost 4 per cent year-on-year in the first quarter of FY26, driven by Pradhan Mantri Awas Yojana, Pradhan Mantri Sadak Yojana, Bharat Mala, Sagar Mala and other INSA projects, and we remain bullish for this financial year. We are upping our demand estimate by 1 per cent from earlier 6-7 per cent to now 7-8 per cent," said Bahety. Dalmia Bharat MD and CEO Puneet Dalmia, in the earnings conference call, said: "Even with the early onset of monsoon, the spot prices of cement are holding up and are almost at a similar level to the Q1 average cement prices. We remain reasonably optimistic that these prices will hold".
Economic Times
7 minutes ago
- Economic Times
She earned Rs 10 a day; her son rakes in Rs 2 crore per year, owns 13 homes. Man's rags-to-riches story goes viral
Synopsis Losing his father early, he faced immense poverty, working tirelessly to support his family. After completing his engineering, he moved to the US, building a fortune and fulfilling his dream of providing his mother a dignified life. Agencies From ₹40 a Day to 13 Homes: A Man's Extraordinary Journey of Grit Once, his family struggled to earn Rs 40 per day. Today, he is the proud owner of 13 luxurious homes in India. Taking to the subreddit Indian Flex, a man shared his inspiring rags-to-riches story. The story begins in the shadow of immense poverty. The narrator lost his father as an infant in 1985, leaving his mother as the sole provider. She toiled endlessly in agricultural fields during the early 1990s, often earning as little as ten to thirty rupees a day. Their home was a fragile structure where rainwater frequently flooded the kitchen, and nights were filled with tears of despair from both his mother and grandmother. Life was a constant reminder of scarcity—no gold, no proper clothing, and food that barely filled their 1991, the lack of financial stability also robbed the family of social respect. The struggle to survive meant that every family member, including the narrator as a child, had to contribute to daily earnings. In 1993, they could only make twenty to forty rupees per day combined, a meager sum that forced the young boy to shoulder responsibility beyond his years. Despite his young age, he worked through every summer holiday to afford basic necessities like notebooks. His first job in 1994 paid him nine rupees per day, followed by another in 1995 where he earned twelve rupees. By 1996, he took up backbreaking labor as a load man for twenty-eight rupees a day. While his peers enjoyed summer breaks with movies, bicycles, and family outings, he sacrificed leisure to fund his dressed in one set of clothes for the entire school year and living without luxuries like radios, fans, or even a bicycle, he remained academically brilliant. He topped his class in 1998 and again secured the first rank in Grade 12 in 2000. These achievements reflected both his intelligence and 1997, a blow came when his maternal grandparents chose to give away their land to his uncles rather than his mother. Despite these setbacks, he aspired to join the Indian Administrative Service or become an IPS officer. However, by 2003, after experiencing unfulfilled love and facing the realities of financial limitations, he gave up personal happiness and focused solely on one goal—buying a house for his 2004, he was weighed down by debt of nearly a lakh and still had no property of his own. But the following year brought a turning point. He completed his engineering degree in 2005 and secured a placement in a multinational corporation. In 2006, he moved to the United States, opening the doors to new of persistence paid off in extraordinary ways. By 2025, he had built a remarkable portfolio: four fully paid apartments in the US, a nine-crore luxury home with most of the loan already cleared, and thirteen properties in India that included apartments across metros and smaller cities, a villa, and several residential units. He also purchased six valuable land plots and two farmhouses and invested heavily in real estate instead of keeping money idle in material success extended to luxury cars, including a sports car worth one crore. With a combined annual income of $250,000 to $300,000 alongside his wife, he achieved the kind of lifestyle once unimaginable in his him, true wealth was not personal indulgence but fulfilling his lifelong promise to his mother. He built a villa in her name, showered her with gold, and ensured she lived the life of dignity she once lacked. Every house, plot, and investment was dedicated to giving her comfort. Unfortunately, she passed away three years ago due to medical negligence, leaving him devastated. He spent two years drowning in grief and alcohol before finding the strength to move forward today, success is bittersweet. He admits to breaking down when he sits before a table filled with food, remembering the hunger of his childhood. Driving his luxury cars sometimes brings tears as he recalls the sacrifices of his parents and grandparents. The scars of poverty, though hidden behind wealth, remain etched in his story stands as proof that persistence and sacrifice lead to transformation. He emphasizes that dreams cannot be realized overnight; they require years of commitment and relentless effort. Though he gave up youthful joys, relationships, and happiness, he achieved his ultimate goal—offering his family, especially his mother, a life of respect and abundance. Today, he passes this lesson on to his children, reminding them that with unwavering determination, even the harshest beginnings can be rewritten into a life of triumph.
Time of India
7 minutes ago
- Time of India
Higher sales realisation and volume growth boost cement companies' earnings in June quarter
Cement companies in India performed well in the June quarter. They saw volume growth and better sales. Government spending on infrastructure helped. Lower costs for coal and petcoke also boosted profits. UltraTech, Ambuja, and Birla Corporation reported increased sales. Some companies faced challenges due to regional issues and weather. Cement prices increased compared to last year. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Driven by increased government spending on key infrastructure projects, leading cement manufacturers reported a solid performance in the June quarter with a double-digit volume growth and higher sales makers expect the trend of an overall improvement to continue in lower input costs, such as a decline in coal and petcoke prices , along with stable diesel costs, also helped in improvement on EBITDA terms, which faced a rough patch in cement maker UltraTech Cement reported a volume growth of 9.7 per cent to 36.83 million tonnes (MT), helped by acquisitions of India Cements and the cement business of Kesoram Adani Group firm Ambuja Cements also reported its highest-ever cement sales volume of 18.4 MT and its highest-ever quarterly revenue at Rs 10,000 volume of Birla Corporation rose 9.36 per cent to 4.79 MT, and Nirma Group firm Nuvoco Vistas Corp reported a sales volume of 5.1 MMT in Q1. JK Lakshmi Cement 's sales volume increased nearly 10 per some companies, like Shree Cement , saw their volumes decline due to geopolitical tensions in the northern region. Dalmia Bharat 's sales volume fell 5.8 per cent to 7.4 MT, impacted by the discontinuation of tolling volumes from Jaypee, while Ramco Cements reported a 7 per cent decline due to early monsoon rains in the earnings conference call, Ambuja Cement CEO Vinod Bahety said momentum is built on various factors, including strong value focus, robust volume growth, price improvement and deeper channel expected the trend of price improvement and overall volume improvement to CFO Atul Daga in the earnings call said: "The government capex programme has shown a marked improvement in the first two months of this quarter on the low base of April-May 2024. We are seeing rising state government spending. States like Bihar, Andhra, Gujarat, and Maharashtra are doing much better than the other states year-on-year".The industry was also supported by the cement price all-India average cement price increased by 7 per cent year-on-year in June 2025 to Rs 355 per 50 kg bag."In Q1 FY2026, the prices were up 7 per cent year-on-year at Rs 360/bag on account of price hikes undertaken by cement companies amid healthy demand. In FY2025, cement prices declined by 7 per cent year-on-year to Rs 340/bag," according to an Icra in July, coal prices declined by 21 per cent year-on-year to USD 103/MT, and petcoke prices fell 3 per cent year-on-year to Rs 10,860/MT."In 4M FY2026, the prices of coal were lower by 10 per cent year-on-year, while petcoke and diesel prices were stable on a year-on-year basis," Icra said, expecting the margins likely to "improve by 80-150 bps to 16.3-17.0 in FY2026 due to expected hike in cement prices and stable input costs".In the near term, the demand is expected to be flat due to the monsoon in the second quarter. However, companies are assured of growth after that, and aim to achieve a growth of around 7 per cent in FY26."The cement demand grew by almost 4 per cent year-on-year in the first quarter of FY26, driven by Pradhan Mantri Awas Yojana, Pradhan Mantri Sadak Yojana, Bharat Mala, Sagar Mala and other INSA projects, and we remain bullish for this financial year. We are upping our demand estimate by 1 per cent from earlier 6-7 per cent to now 7-8 per cent," said Bahety. Dalmia Bharat MD and CEO Puneet Dalmia, in the earnings conference call, said: "Even with the early onset of monsoon, the spot prices of cement are holding up and are almost at a similar level to the Q1 average cement prices. We remain reasonably optimistic that these prices will hold".
