NCLT Clears Nuvoco Vista’s ₹1,800 Crore Acquisition Plan for Vadraj Cement

The National Company Law Tribunal (NCLT), Mumbai Bench, has approved Nuvoco Vistas Corporation Ltd.’s resolution plan to acquire Vadraj Cement Ltd. for ₹1,800 crore. The acquisition will be carried out through Vanya Corporation Pvt. Ltd., a wholly owned subsidiary of Nuvoco. After completion, Vanya will merge with Vadraj Cement, making it a 100% subsidiary of Nuvoco.

As of 9:42 AM on April 7, 2025, Nuvoco Vistas Corporation share price was trading at ₹300.90, a 4.88% down, up 1.89% over the past five days, but down 10.04% in the last six months.

Capacity Addition 

Following the acquisition, Nuvoco’s total cement manufacturing capacity is expected to increase by over 20%, from 25 million tonnes per annum (MTPA) to approximately 31 MTPA. Vadraj Cement currently has a 3.5 MTPA clinker unit in Kutch and a 6 MTPA grinding unit in Surat. The company also owns limestone reserves and operates a captive jetty in Kutch.

Investment Plans

Nuvoco plans to invest an additional ₹1,000 – ₹1,200 crore to operationalise Vadraj Cement’s assets, which have been inactive for nearly seven years. This investment will be phased over 15-18 months after the official handover. Production is targeted to commence in the third quarter of FY27.

Funding and Structure

The ₹1,800 crore consideration will be paid in cash, and the company has stated that it intends to fund the transaction without an increase in its consolidated debt. The resolution plan includes steps such as increasing Vadraj’s authorised share capital, cancelling existing equity, and issuing new shares to the implementing entity.

Timeline and Approvals

The implementation of the resolution plan is expected within 45 days from the date of approval. The merger process between Vanya and Vadraj Cement is projected to complete within 47 days. Nuvoco has also sought multiple regulatory approvals and reliefs for seamless implementation.

Conclusion

The acquisition process is expected to conclude within the next few weeks, followed by phased investments to restart operations at Vadraj Cement’s facilities. Production is likely to begin by the third quarter of FY27. Once completed, the transaction will bring Vadraj Cement under the full ownership of Nuvoco Vistas.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.