Billionaire investor Rakesh Jhunjhunwala’s fight to pick up a stake in Binani Cement just got tougher as Dalmia Bharat-Bain Piramal Resurgence Fund leads the race exceeding Aditya Birla-led UltraTech Cement offer by a few hundred crore rupees. Rakesh Jhunjhunwala and Radhakrishnan Damani had earlier made an offer saying that they would better any other competing offer from Ultratech and Bain-Piramal, Business Standard had reported a lender as saying.
In January this year, Rakesh Jhunjhunwala had teamed up with billionaire investor and D-Mart promoter Radhakrishnan Damani to bid for Binani Cement, a company which is facing bankruptcy proceedings from its lenders. The lenders in the company had reportedly made a claim of Rs 3,884 crore which includes loans acquired by Edelweiss Asset Reconstruction Company from banks and dues to State Bank of India, Canara Bank and Bank of Baroda. Further, the company also faces claims of Rs 2,429 crore from IDBI Bank and SBI in the form of corporate guarantees.
Interestingly while six entities were vying for a stake in the company including the combination of Rakesh Jhunjhunwala and Radhakishan Damani; Heidelberg; JSW Cement and True North-Ramco, the bids of Ultratech Cement and consortium led by Dalmia Bharat have reportedly submitted bids of Rs 6,000 crore each. According to a Bloomberg report on February 17, the race for Binani has narrowed down to Dalmia Bharat led consortium and Aditya Birla group company UltraTech Cement.
According to a Livemint report, the amount of Rs 6,000 crore includes upfront cash payments, as well as an offer of close to 20% stake in Binani to lenders. Ace investor Rakesh Jhunjhunwala seems to be in a buying spree, and in a short span of two months ending January, the investment maestro had made three huge diversified bets. After teaming with billionaire investor Radhakrishnan Damani to bid for Binani Cement, Rakesh Jhunjhunwala has reportedly bid for Star Health & Allied Insurance. Most notably, the company carries a price tag of $1 billion.
In December-17, Rakesh Jhunjhunwala had picked up equity stake worth Rs 180 crore in Mumbai-based gaming startup Nazara Technologies, which has an IPO coming up soon. “I am always on the lookout for promising companies which are leaders in high growth verticals. Nazara is a leading company in the mobile games business. Nazara has a consistent track record of delivering profits, cash flows, along with efficient use of capital and high ROE. I see a growth potential in the company,” Rakesh Jhunjhunwala said in December-17.