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

Next Story
Infrastructure Urban

DCPC Prepares for Special Campaign 5.0 with Focus on E-Waste

The Department of Chemicals and Petrochemicals (DCPC), Ministry of Chemicals and Fertilisers, is gearing up for Special Campaign 5.0, to be held from 2nd to 31st October 2025. The initiative will focus on e-waste disposal as per MoEFCC’s E-Waste Management Rules 2022, space optimisation, and enhancing workplace efficiency across field offices.Special Campaign 4.0, conducted between October 2023 and October 2024, delivered notable results in record management, grievance redressal, scrap disposal, and cleanliness drives.Key outcomes of Special Campaign 4.0Records management: 2,443 physical fil..

Next Story
Real Estate

BlackRock India Leases 1.4 Lakh Sq Ft in Bengaluru

BlackRock Services India, the domestic arm of global asset manager BlackRock, has leased 1.4 lakh sq ft of office space at IndiQube Symphony in Bengaluru, according to Propstack data. The 10-year deal is valued at around Rs 4.10 billion.The lease, among the largest transactions in India’s co-working sector, highlights the growing preference of global institutions for flexible office providers. The agreement, commencing October 1, 2025, covers ground plus five floors in KNG Tower 1 at Ashoknagar, MG Road — one of Bengaluru’s prime commercial hubs.As per the lease document, BlackRock will ..

Next Story
Infrastructure Transport

L&T Bags Rs 25–50 Bn Order for Mumbai-Ahmedabad Bullet Train Track Works

Larsen & Toubro’s (L&T) Transportation Infrastructure business has secured an order valued between Rs 25 crore and Rs 50 billion from the National High Speed Rail Corporation Limited (NHSRCL) for the Mumbai-Ahmedabad High Speed Rail (MAHSR) corridor.The contract, Package T1, involves the design, supply, construction, testing, and commissioning of 156 route km of high-speed ballastless track on a Design-Build Lump Sum Price basis. The stretch runs from Mumbai’s Bandra-Kurla Complex to Zaroli village in Gujarat and includes 21 km of underground track and 135 km of elevated viaduct.Se..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?