Binani Industries Ltd. has sought the approval of shareholders for sale of 98.43% equity shares and 100% of preference shares of its arm, Binani Cement, to UltraTech Cement Ltd.
Bank of Baroda had initiated insolvency proceedings against Binani Cement. According to resolution professional, the total debt, including guarantees, amounted to ₹7,289 crore. The resolution professional had invited bids for revival of the firm.
“It is understood that there were six bids with the highest bid being ₹6,590 crore (based on newspaper reports),” Binani Industries said in its explanatory note to shareholders.
However, Binani Industries said that it felt that Binani Cement should fetch more value than what was received through the bids and expressed its concern to the resolution professional and sought for the details of the proceedings before the committee of creditors.
Binani alleged that the resolution professional did not provide the details, and moved the National Company Law Tribunal Kolkata Bench.
Binani said that UltraTech had revised its offer by ₹700 crore according to newspaper reports. However, Dalmia Cement was shortlisted, whose bid was lower than Ultra Tech, it added.
NCLT would be deciding on the matter.
