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UltraTech Cement, an Aditya Birla Group company, has expressed surprise over lenders announcing Dalmia Bharat-led consortium as the highest bidder for stressed Binani Cement asset without considering its revised bid of ₹7,266 crore.
Atul Daga, Chief Financial Officer, UltraTech Cement, said it seems that the lenders had already decided in favour of Dalmia Cement, even before the bidding process started and this decision will lead to litigations.
“We had already moved NCLT against the lenders’ decision and it will come up for hearing on March 19. We are hopeful that NCLT would rule in our favour, if not we will consider other options including moving the High Court,” he added.
NCLT should rule in UltraTech favour as it had earlier directed the lenders to consider Liberty House bid for Bhushan Steel even though it was placed after the deadline, he said.
On Wednesday, lenders, including large banks, voted in favour of accepting Dalmia Bharat bid of ₹6,700 crore turning down UltraTech’s revised offer of ₹7,266 crore.
The voting on the bids was done only by large banks and they are not considering the interest of 2,950 minority lenders who will be repaid in full if UltraTech offer is considered, said Daga.
Scoring methodology
In fact, the Hong Kong branch of State Bank of India, one of the minority lenders, has already approached NCLT against the voting decision. Raising questions over the scoring methodology, Daga said UltraTech superior over Dalmia on all counts with a topline of ₹25,000 crore and zero debt.
“Even before we revised the bid higher, the difference in score between us was just in decimals. We lost out as resolution professional advisor unilaterally decided that we will not get the Competition Commission of India approval for the deal even though we had proved it wrong,” said Daga.
Rajasthan market
UltraTech will not be a dominant player in Rajasthan market as it is crowded with presence of top six cement companies.
After Binani deal, UltraTech will have capacity of only 14 mtpa in Rajasthan, while Shree Cement will reach 19 mtpa with its ongoing capacity addition of 2 mtpa, he added.
On UltraTech expertise in turning around stressed asset, Daga said Jaiprakash Associates distress sale of 21 mtpa acquired by UltraTech for ₹16,100 crore has already become cash break-even in just nine months after the deal was completed.
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