Dalmia pips UltraTech to win Binani Cement bid

MUMBAI: DALMIA CONSORTIUM HAS AGREED TO INVEST AROUND ₹6,700 CRORE IN THE CEMENT FIRM

Dalmia Bharat Cement Ltd on Tuesday emerged the winner for troubled Binani Cement Ltd, beating India’s largest cement maker UltraTech Cement Ltd which had put in a nearly identical bid.

The creditors’ panel supervising the insolvency proceedings of Binani Cement on Tuesday approved the resolution plan submitted by Dalmia, backed by Bain Piramal Resurgence Fund. Mint had reported on February 19 that Dalmia Bharat and UltraTech had submitted nearly identical bids.

The Dalmia consortium has agreed to invest around ₹6,700 crore in the stressed cement firm over a period of time, two people aware of the development said. Binani Cement, which was admitted by the National Company Law Tribunal (NCLT) in July 2017 for resolution under the insolvency and bankruptcy code, owes around ₹6,500 crore to its lenders. According to the two people cited earlier, UltraTech’s lost out because of some concerns surrounding penalties imposed on the company by Competition Commission of India.

A spokesperson for UltraTech Cement said she is not aware of the development pertaining to CCI and declined to comment on the matter.

In 2016, CCI had imposed a penalty of ₹1,175.49 crore on UltraTech. This was part of an overall penalty of ₹6,700 crore imposed on 11 cement companies, including UltraTech, ACC, Ambuja Cements Ltd, Ramco Cements Ltd and JK Cement Ltd, as well as industry body Cement Manufacturers Association for indulging in cartelisation.