Latest news with #VadrajCement
Time of India
7 hours ago
- Business
- Time of India
Nuvoco Vistas completes Rs 1800 cr Vadraj cement acquistion
Live Events (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 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 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 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 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 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.
Economic Times
29-04-2025
- Business
- Economic Times
Strategic buyers and investors scouting for insolvency-affected cement assets
Strategic buyers and investors are actively pursuing distressed cement companies undergoing insolvency, with Jaiprakash Associates Ltd's cement business being a prime target. Factors driving this interest include consolidation in the sector, government infrastructure initiatives, and the potential for cost optimization through acquisitions. Recent deals, like Nuvoco Vistas Corp's acquisition of Vadraj Cement, highlight this trend. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Mumbai: Several strategic buyers as well as investors are actively scouting for cement manufacturing companies which are currently undergoing the corporate insolvency resolution process under the Insolvency & Bankruptcy of the most sought-after assets in the sector is the cement business of debt-laden Jaiprakash Associates Ltd (JAL). The company has four plants in North and Central India and has a capacity of about 6 million tonnes per annum. Its plants are at Rewa in Madhya Pradesh and Chunar, Churk and Sadwa in Uttar company's resolution professional, Bhuvan Madan, has received expressions of interest from companies including Adani Enterprises , Dalmia Cement (Bharat) Ltd, Vedanta Ltd and Rashmi Metaliks Ltd. Apart from cement, JAL also has assets in power, hospitality and real estate, and hence about two dozen bidders have shown interest in multiple and strategic buyers are also closely observing the ongoing insolvency cases against companies, including Jammu & Kashmir Cements, Kirtiman Cements & Packaging and Gujarat-based Dhara Cements (India)."The sector has been quite active and holds considerable potential for distressed M&A," said Karishma Dodeja, partner at the law firm Trilegal. "This is because of the wave of consolidation brought on by Ultratech and Adani Group, the strong infrastructure push by the government and the high debt burden of some of the smaller cement companies, making them attractive targets for acquisition ," she the Mumbai bench of the National Company Law Tribunal (NCLT) approved Vadraj Cement's acquisition by Nirma group-owned cement maker Nuvoco Vistas Corp Around the same time, Virgo Cements, a smaller operator with ₹74 crore in admitted claims, also secured a resolution after its lenders, including PNB and Indian Bank , voted unanimously in favour of PRAG India's experts are citing pricing, location and synergies as the three primary reasons for the surge in deals in the sector. Most cement companies are available at a discount. Also, medium and small players are located at less-penetrated and high-growth markets and for large players, addition of medium and smaller cement makers offers attractive cost optimisation Dhruva, managing partner of law firm MDP Legal, said those cement plants, which are being operated as going concerns, are witnessing keen interest from the strategic players, especially those with approval for additional capacities.
Time of India
29-04-2025
- Business
- Time of India
Strategic buyers and investors scouting for insolvency-affected cement assets
Strategic buyers and investors are actively pursuing distressed cement companies undergoing insolvency, with Jaiprakash Associates Ltd's cement business being a prime target. Factors driving this interest include consolidation in the sector, government infrastructure initiatives, and the potential for cost optimization through acquisitions. Recent deals, like Nuvoco Vistas Corp's acquisition of Vadraj Cement, highlight this trend. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Mumbai: Several strategic buyers as well as investors are actively scouting for cement manufacturing companies which are currently undergoing the corporate insolvency resolution process under the Insolvency & Bankruptcy of the most sought-after assets in the sector is the cement business of debt-laden Jaiprakash Associates Ltd (JAL). The company has four plants in North and Central India and has a capacity of about 6 million tonnes per annum. Its plants are at Rewa in Madhya Pradesh and Chunar, Churk and Sadwa in Uttar company's resolution professional, Bhuvan Madan, has received expressions of interest from companies including Adani Enterprises , Dalmia Cement (Bharat) Ltd, Vedanta Ltd and Rashmi Metaliks Ltd. Apart from cement, JAL also has assets in power, hospitality and real estate, and hence about two dozen bidders have shown interest in multiple and strategic buyers are also closely observing the ongoing insolvency cases against companies, including Jammu & Kashmir Cements, Kirtiman Cements & Packaging and Gujarat-based Dhara Cements (India)."The sector has been quite active and holds considerable potential for distressed M&A," said Karishma Dodeja, partner at the law firm Trilegal. "This is because of the wave of consolidation brought on by Ultratech and Adani Group, the strong infrastructure push by the government and the high debt burden of some of the smaller cement companies, making them attractive targets for acquisition ," she the Mumbai bench of the National Company Law Tribunal (NCLT) approved Vadraj Cement's acquisition by Nirma group-owned cement maker Nuvoco Vistas Corp Around the same time, Virgo Cements, a smaller operator with ₹74 crore in admitted claims, also secured a resolution after its lenders, including PNB and Indian Bank , voted unanimously in favour of PRAG India's experts are citing pricing, location and synergies as the three primary reasons for the surge in deals in the sector. Most cement companies are available at a discount. Also, medium and small players are located at less-penetrated and high-growth markets and for large players, addition of medium and smaller cement makers offers attractive cost optimisation Dhruva, managing partner of law firm MDP Legal, said those cement plants, which are being operated as going concerns, are witnessing keen interest from the strategic players, especially those with approval for additional capacities.
