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NCLT approves Nuvoco Vistas’ acquisition of Vadraj Cement for Rs.1,800 crores

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Nuvoco Vistas Corp has received the green light from the Mumbai Bench of the Hon’ble National Company Law Tribunal (NCLT) to acquire Vadraj Cement Ltd (VCL) under the Insolvency and Bankruptcy Code, 2016. The approved resolution plan involves an upfront cash outlay of Rs.1,800 crores, with the transaction poised to significantly enhance Nuvoco’s market footprint.
The acquisition will be executed via Vanya Corporation, a wholly owned subsidiary of Nuvoco. As part of the plan, Vanya will be amalgamated into VCL, post which VCL will become a wholly owned subsidiary of Nuvoco Vistas. Following the acquisition, Nuvoco’s total installed cement production capacity is expected to expand by over 20 per cent, reaching approximately 31 million metric tonnes per annum (MMTPA). This boost in capacity will solidify its position as the fifth-largest cement manufacturer in India.
Calling the deal a strategic ‘value buy,’ the company estimates the cost of capacity addition at around $60–$65 per tonne—among the most cost-efficient transactions in the sector in recent times. Notably, Nuvoco plans to fund the acquisition without substantially increasing its overall debt.
In addition to the acquisition cost, Nuvoco plans to invest another Rs.1,000– Rs.1,200 crores to revive and operationalise VCL’s assets, which have remained non-functional for nearly seven years. These investments will be phased over a 15–18 month period post-handover from the Committee of Creditors. The company aims to resume production by the third quarter of FY27.

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