Binani Cement creditors have accepted UltraTech Cement’s Rs7,950 crore bid to acquire the company. The approval has come at a time when Dalmia Bharat-led consortium has challenged the order of National Company Law Appellate Tribunal (NCLT) to consider the revised bid of Aditya Birla Group’s UltraTech Cement. Piramal Enterprises and Bain Capital are also part of the Dalmia Bharat-led consortium.

The stock markets have given a thumbs up to the deal with UtraTech Cement trading at 1 per cent higher today at Rs 3,765.

Binani Cement has a debt of Rs 6,469 crore, and is in the list of 12 companies that were first referred by the Reserve Bank of India (RBI) for insolvency proceedings. Tata Steel’s acquisition of Bhushan Steel has been the first successful case among those 12 companies.

According to reports, Committee of Creditors (CoC) voted to approve UltraTech’s bid at the meeting on Monday. UltraTech’s bid is around Rs 1,000 crore higher than the offer by Rajputana Properties, which is the wholly-owned subsidiary of Dalmia Bharat Group.

The committee of creditors includes Edelweiss Asset Reconstruction Company, State Bank of India, IDBI Bank, Bank of Baroda and Bank of India.

The appeal by Dalmia Bharat is likely to be heard by the Supreme Court next week. The questions have been raised why Ultra Cement allowed bidding under the IBC, which does not allow defaulting promoters to participate in the bidding process. It has been alleged that UltraTech is working with Binani Industries Ltd, which is the parent company of Binani Cement and therefore should be considered as a defaulter.

Earlier, the Kolkata bench of NCLT directed the Binani Cement to consider the revised bid of Ultra Tech Cement. The NCLT bench also directed creditors to consider the resolution plan of Rajputana Properties Ltd if it matches UltraTech’s offer.

With inputs from PTI