UltraTech bags Binani Cement

Finally, the lenders of Binani Cement voted for UltraTech Cement’s Rs. 7,950 crore bid on Monday, which is nearly Rs. 1,000 crore higher than that of Dalmia Bharat Group's offer.

On May 2, the National Company Law Tribunal (NCLT) had ruled that the aim of the Insolvency Bankruptcy Code was to find maximum value for the distressed company and demanded that the lenders consider the offer made by UltraTech. Earlier, the Committee of Creditor (CoC) of Binani Cement had refused to accept the bid of UltraTech, a wholly-owned subsidiary of Aditya Birla Group. In response to this, UltraTech made a backdoor entry by dealing directly with Binani Industries, the parent company of Binani Cement.

The CoC of Binani Cement was led by Edelweiss Asset Reconstruction Company and included Bank of Baroda, Bank of India, IDBI Bank and SBI. The company owes Rs. 6,469 crore to the creditors.

Meanwhile, the stock of Ultratech Cement was quoting Rs. 3,715.95 down by 0.43 per cent, Binani Industries was at Rs. 94.00, up by 4.16 per cent.