Mumbai: In a fresh twist in the bidding process for Binani Cement Ltd, top bidder Ultratech Cement Ltd has increased its bid amount to $1 billion to beat the Bain Capital-backed consortium that is currently leading the race. It may be noted that the company has increased its initial bid from Rs 6,200 crore to Rs 6,600 crore or USD one billion, confirmed the CFO of the company on Wednesday.
Kumar Mangalam Birla’s Ultratech has locked horns with a consortium of companies led by Dalmia Bharat Ltd to acquire debt-ridden Binani Cement, whose bidding is being overseen by resolution professional Vijaykumar Iyer of Deloitte Touche Tohmatsu India LLP.
Commenting on the bidding process, Ultratech’s CFO Atul Daga said the company is not satisfied with the way the bidding process is being dealt with, as it is not transparent and equitable. He goes on to highlight that there was a marginal gap in the bids placed by Ultratech and the Bain-backed consortium. He stated that lenders should have called both the bidders to maximize the value.
The matter has been taken seriously by Ultratech, which has now approached the National Company Law Tribunal (NCLT) with the complaint. The NCLT is expected to officially hear the matter on March 19, confirmed Daga. Before Ultratech’s fresh bid, the Dalmia Bharat consortium was leading the Binani acquisition race, with a bid of approximately Rs 6,350 crore, confirmed people familiar with the matter. The consortium also agreed to offer about 20 percent stake in Binani Cement to the lenders. Dalmia Bharat, on the other hand, placed a joint bid with Bain Capital-backed India Resurgence Fund, and Parimal Enterprises Ltd.