A day after the apex court cleared its bid for Binani CementNSE 0.00 %, Ultratech CementNSE -0.01 % announced that the Braj Binani group flagship company has become a subsidiary of Ultratech.
The board of Binani Cement has also been reconstituted, Ultratech told the stock exchange on Tuesday.
“In terms of the Company’s Resolution Plan approved by the National Company Law Appellate Tribunal, the Board of BCL has been re-constituted and BCL has become a wholly-owned subsidiary of the Company with effect from 20th November, 2018,” Ultratech said in a notification to the Bombay Stock Exchange.
The Supreme Court on Monday upheld the appellate tribunal’s order that approved Ultratech’s bid for Binani Cement as part of the insolvency law. The NCLAT on November 14 had dismissed rival bidder Dalmia Bharat’s plea on the ground that its offer of Rs 6,932 crore was “discriminatory” against some operational as well as financial creditors.
Through its offer of Rs 7,950 crore for the asset, Ultratech has gotten the ownership of a 6.25 MT plant in the state of Rajasthan that comprises an integrated cement unit with capacity of 4.85 MT and a 1.4 MT split grinding unit. Binani Cement has also expanded its operations to Dubai and China and apart from India, enjoys major market share in countries like UAE, Sudan, South Africa, Tanzania, Madagascar and Namibia, according to information on its website.
India’s largest cement maker Ultratech has been on an acquisition spree. Last year it had added 21.2 MT of ready capacity by acquiring six integrated plants of Jaypee Associates. This year in May, the company had absorbed the cement business of Century Textiles and Industries by way of a demerger of the latter’s business through a share swap.
With Binani becoming its wholly-owned subsidiary, Ultratech has now reached a capacity of more than 116 MT and has further strengthened its presence in the western market of Rajasthan.
Binani Cement reported annual revenue of Rs 1,535 crore for the year 2016 with a total net loss of Rs 348 crore.
Source: Economic Times