Ultratech Proposes to Acquire Stressed Binani Cement

In a fresh twist to the auction of Binani Cement, UltraTech Cement today announced it is set to buy Binani's stressed assets after its board agreed to issue a 'comfort letter' providing Rs 7,266 crore to Binani's parent.

Binani Industries Ltd, the parent, will use the money to pay off Binani Cement's lenders and other liabilities.

The latest move comes after the Aditya Birla Group company had alleged lack of transparency in the proceedings to auction Binani Cement, which was referred to the National Company Law Tribunal after accumulating debts of Rs 5,000 crore.

In  a meeting held on March 16, the Committee of Creditors had approved the plan presented by Dalmia Cement, dealing a blow to UltraTech's plans.