Nirma Group Outbids Ambuja for Vadraj Cement

8 Jan 2025 , 11:29 AM

According to news reports, Nuvoco Vistas, supported by the Nirma Group, outbid Adani Group during an auction held as part of the court-monitored corporate insolvency process, offering ₹1,800 crore to buy Vadraj Cement.

ArcelorMittal, JSW Group, and JK Cement were among the other contenders. The Gujarat-based cement company, which has a 3.5-million-ton clinker capacity in Kutch and a 6 million-ton grinding unit in Surat, was acquired by the Adani group-backed Ambuja Cement in collaboration with the Prudent ARC-backed RKG Fund.

The remaining ₹1,800 crore of Nuvoco Vistas’s offer is allocated for operational credit, employee debt, and CIRP (corporate insolvency resolution process) expenses, with ₹1,725 crore going toward paying off financial creditors.

According to Nuvoco Vistas, the lenders accepted the resolution plan of its subsidiary Vanya Corporation on Monday. However, it omitted information on the acquisition cost.

Nirma, Adani, JSW Cement, ArcelorMittal, JK Cement, Rashmi Metaliks, and KIFS Finstock all sent Gupta seven resolution proposals. According to those listed above, Nirma made the highest offer in the first round of ₹1,450 crore, while Adani, JSW Cement, and ArcelorMittal made offers of about ₹1,000 crore. At a base price of ₹1,500 crore, RP conducted a challenge auction in response to the Nirma group’s offer.

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