ultratech: UltraTech, AM Mining, Other Eyes Vadraj Cement

MUMBAI: Aditya Birla Group’s UltraTech Cement, Sajjan Jindal-promoted JSW Cement and Lakshmi Mittal-promoted ArcelorMittal are among the 12 companies vying to acquire Vadraj Cement, formerly owned by ABG Shipyards, with creditor liabilities of around ₹8,000 crore. It was announced that it had secured. A person with knowledge of the matter.

Nirma Group, JK Cement, Naveen Jindal Group and Oaktree Capital are also among the potential acquirers, officials said.

AM Mining India, a joint venture of ArcelorMittal and Nippon Steel, Oaktree Capital-backed India Opportunities XII Investments and Nirma Group-backed Nuvoco Vistas Corporation have submitted expressions of interest (EoI). Jindal Panther Cement, an affiliate of Naveen Jindal Group, and CN Infrabuild, promoted by PN Group, also submitted separate EoIs.

Pulkit Gupta, a resolution expert backed by EY India, did not respond to ET’s request for comment. While ArcelorMittal and JSW Cement declined to comment, Aditya Birla Group responded to ET’s request for comment.

Orissa Metaliks promoted by Rashmi Group, KIFS Finstock promoted by Khandwala Group, Kutch Salt and Allied Industries promoted by Friends Group. RKG Fund II promoted by Prudent Asset Reconstruction Company (ARC) also submitted its EoI. Gupta, a resolution expert, admitted claims worth ₹8,030 crore from secured lenders. This includes Punjab National Bank’s claim of ₹2,005 crore, equivalent to a quarter of its total debt. Union Bank of India has the second highest claims at ₹1611 crore, which is one-fifth of the total confirmed liabilities. Indian Overseas Bank and Central Bank of India are the other two lenders with debt-to-equity ratios of 17% and 16% respectively. Other lenders include Bank of Baroda, UCO Bank and JC Flowers ARC. The company has an integrated cement manufacturing facility comprising a 10,000 tonnes per day (TPD) clinker unit in Kutch and a 6 million tonne per day (mt) cement crushing unit in Surat. Located in Gujarat. It also holds limestone mining concessions and a captive dock in Kutch. Vadraj Cement was recognized as insolvent by the National Company Law Tribunal (NCLT) in the first week of February. This left the company in liquidation for over five years under the supervision of the Bombay High Court. The case was later moved to the NCLT, giving lenders a glimmer of hope for recovery.

The High Court had ordered the winding up of the company on August 23, 2018, in the matter of Beumer Technology v. Vadraj Cement. The court recalled its order dated August 18, 2023, following the plea of ​​JC Flowers ARC.