Sagar Cements leads race for Jaypee's ailing Andhra Cements
Cement

Sagar Cements leads race for Jaypee's ailing Andhra Cements

Sagar Cements is the frontrunner to acquire Andhra Cements, a Jaypee Group company undergoing insolvency proceedings, according to an Economic Times report citing unnamed sources.

Andhra Cements' lenders have received expressions of interest from Sagar Cements, B C Jindal's Jindal Poly Films, Dalmia Cement (Bharat) Ltd and Khandwala Finstock Pvt Ltd, according to a stock exchange disclosure.

Hyderabad-based asset reconstruction company Pridhvi Asset Reconstruction and Securitisation Company (Paras) has an 86% share of verified debt in Andhra Cements, while Union Bank of India and State Bank of India have about 11% and 3% respectively. Through this bankruptcy resolution, lenders hope to recover about 40-45% of their claims.

Since Andhra Cements is listed, Sagar Cements would first be required to make an open offer to the public immediately after buying 25% of the equity. Second, it would be liable to pay the entire government and trade creditors' dues.

Having acquired most of the debt, Paras could control all the resolutions passed by the committee of creditors. Under insolvency proceedings, a critical resolution can be passed only if 66% of the creditors, by the value of debt, vote in favour of the resolution.

According to its latest annual report, Sagar Cements had a production capacity of 8.25 metric tonne per annum (mtpa) at the end of March 2022.

Also Read:
Cement firms to see 21% slump in Q1 Ebitda/tonne: Jefferies
J K Lakshmi launches new brand in central and eastern UP


Sagar Cements is the frontrunner to acquire Andhra Cements, a Jaypee Group company undergoing insolvency proceedings, according to an Economic Times report citing unnamed sources. Andhra Cements' lenders have received expressions of interest from Sagar Cements, B C Jindal's Jindal Poly Films, Dalmia Cement (Bharat) Ltd and Khandwala Finstock Pvt Ltd, according to a stock exchange disclosure. Hyderabad-based asset reconstruction company Pridhvi Asset Reconstruction and Securitisation Company (Paras) has an 86% share of verified debt in Andhra Cements, while Union Bank of India and State Bank of India have about 11% and 3% respectively. Through this bankruptcy resolution, lenders hope to recover about 40-45% of their claims. Since Andhra Cements is listed, Sagar Cements would first be required to make an open offer to the public immediately after buying 25% of the equity. Second, it would be liable to pay the entire government and trade creditors' dues. Having acquired most of the debt, Paras could control all the resolutions passed by the committee of creditors. Under insolvency proceedings, a critical resolution can be passed only if 66% of the creditors, by the value of debt, vote in favour of the resolution. According to its latest annual report, Sagar Cements had a production capacity of 8.25 metric tonne per annum (mtpa) at the end of March 2022.Also Read: Cement firms to see 21% slump in Q1 Ebitda/tonne: JefferiesJ K Lakshmi launches new brand in central and eastern UP

Related Stories

Gold Stories

Next Story
Infrastructure Energy

Asian Energy Services Q1 FY27 PAT Rises 129 Per Cent

Asian Energy Services Limited reported a 129 per cent year-on-year rise in net profit to Rs 128 million for Q1 FY27, compared with the corresponding quarter last year.Revenue increased 135 per cent year-on-year to Rs 2.71 billion, supported by continued momentum across its services business, disciplined execution and contributions from domestic and international operations. EBITDA grew 81 per cent year-on-year during the quarter.As of June 30, 2026, the company’s standalone order book stood at Rs 17.54 billion, with around 60 per cent coming from oil and gas services and 40 per cent from min..

Next Story
Infrastructure Urban

BioBTX to Build First Commercial-Scale Circular Chemicals Plant

Dutch circular chemistry technology developer BioBTX is building what it says will be the world’s first commercial-scale plant to convert mixed plastic waste into high-quality aromatic chemicals using its proprietary Integrated Catalytic Cracking Process (ICCP) technology.The facility will be built at Chemical Park Delfzijl on the northern coast of the Netherlands and is expected to create 35 jobs. Covestro, which has been a shareholder and strategic partner of BioBTX since 2024, holds a mid-single-digit million-euro investment in the company.BioBTX’s ICCP technology uses catalytic pyrolys..

Next Story
Real Estate

Awfis Q1 FY27 PAT Jumps 140% as Revenue Rises 27%

Awfis Space Solutions reported a 140 per cent year-on-year rise in consolidated profit after tax (PAT) to Rs 240 million for Q1 FY27, compared with Rs 100 million in the corresponding quarter last year.Revenue from operations increased 27 per cent to Rs 4.25 billion from Rs 3.35 billion, while EBITDA rose 28 per cent to Rs 1.62 billion. EBITDA margin improved to 38.2 per cent from 37.8 per cent. Profit before tax increased 135 per cent to Rs 240 million.The company's co-working business recorded 27 per cent year-on-year growth, supported by demand from enterprises, Global Capability Centres (G..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement