Shares of Nuvoco Vistas Corporation Ltd were trading in the green and 1% higher on 4 April after the company announced receiving approval from the Mumbai Bench of the National Company Law Tribunal (NCLT) for its resolution plan to purchase Vadraj Cement for Rs 1,800 crore under the Insolvency and Bankruptcy Code, making it the fifth largest cement group in India.
The deal will be completed via Nuvoco’s wholly-owned subsidiary, Vanya Corporation, which will eventually merge with VCL. After the merger, the business will wholly own VCL as a subsidiary. Nuvoco Vistas is a cement and other building supply firm owned by the Nirma Group.
The company received a letter in January 2025 stating that it intended to buy Gujarat-based Vadraj Cement (VCL) under insolvency proceedings. Prior to the acquisition, Nuvoco had said it planned to invest Rs 1800 crore, with additional investments to come.
The approval order, dated 1 April 2025, was published on the NCLT website on 3 April 2025.
After the acquisition, Nuvoco will rank as the fifth-largest cement company with a combined capacity of roughly 31 MMTPA; by Q3FY27, cement capacity will reach 31 MTPA, and clinker capacity will reach 17 MTPA.
This acquisition will put Nuvoco Vistas in third place in Gujarat and Maharashtra in terms of capacity and expand its footprint in Western India.
Nuvoco has described the acquisition as a “valuable buy” with substantial growth potential at a very competitive price of roughly $60 per tonne, which is lower than the recent high acquisition costs seen in the market. “By acquiring Vadraj Cement, the Company is poised to reach 31 million tonnes per annum (MPTA) cement capacity by Q3FY27,” Nuvoco had said in January 2025.
Nuvoco plans to invest an additional Rs 900–1,200 crore in Vadraj over the next 18 to 24 months. Originally established as Lafarge India in 1999, the company rebranded itself as Nuvoco Vistas after being purchased by the Nirma Group in 2016.
However, at 1:06 pm, the shares of Nuvoco Vistas were trading 1.71% lower at Rs 313.60 on NSE.
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