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New Delhi: Sagar Cements has been declared the successful bidder for the debt-ridden Andhra Cementsa company owned by JP Group and is under corporate insolvency resolution process. The Committee of Creditors (CoC) of Andhra Cements has voted in majority in favor of the resolution plan filed by Sagar Cements Ltd, Andhra Cements said in a regulatory filing.
“Accordingly, the plan submitted by Sagar Cements Limited (SCL) has been approved by the CoC and a letter of intent has been shared with SCL for their acceptance on January 13, 2023,” it said.
While the filing did not disclose the bid amount, according to reports, Dalmia Cement (India) and SCL were competing against each other.
In accordance with the provisions of the Insolvency and Bankruptcy Code (IBC), the resolution plan securing the majority of votes was put to vote for the consideration and approval of the CoC. Considered and approved by the CoC.
In April last year, the Hyderabad bench of the National Company Law Tribunal had directed initiation of insolvency proceedings on a petition filed against Andhra Cements. Prithvi Asset Reconstruction and Securitization Co. Ltd., a default claim.
Earlier in a filing, SCL had said: “We have received a communication from the resolution professional of Andhra Cements dated January 13, 2023 declaring us as the successful resolution applicant along with a letter of intent issued for the purpose ”
Andhra Cements has two manufacturing plants. It was acquired by Jaypee Group from Duncan Goenka Group in 2012.
The acquisition of Andhra Cements by Hyderabad-based SCL will boost its manufacturing capacity. As per the latest annual report, SCL has a total cement capacity of 8.25 million tonnes per annum (MTPA).
SCL is expanding its presence outside Andhra Pradesh and Telangana. It has commissioned new units at Zirabad and Jajpur in Madhya Pradesh and Odisha respectively.
In FY22, SCL’s revenue stood at Rs 1,596.87 crore.
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