NCLAT Upholds Nuvoco’s ₹1,800 Crore Acquisition of Vadraj Cement

The National Company Law Appellate Tribunal (NCLAT) has dismissed an appeal challenging Nuvoco Vistas Corporation’s acquisition of debt-ridden Vadraj Cement, affirming the Mumbai NCLT’s approval of the resolution plan. The ₹1,800 crore deal, executed through Nuvoco’s subsidiary Vanya Corporation, marks a key revival in the cement sector under the Insolvency and Bankruptcy Code (IBC). Vadraj Cement, formerly owned by ABG Shipyard, had accumulated over ₹8,000 crore in debt. It owns a 3.5 MTPA clinker unit in Kutch and a 6 MMTPA grinding unit in Surat. Nuvoco’s bid surpassed both the fair value (₹1,668 crore) and liquidation value (₹1,080 crore), and was approved unanimously by the Committee of Creditors (CoC). The appeal was filed by employees concerned over unpaid gratuity dues (totaling ₹10.51 crore), but NCLAT ruled the resolution plan adequately addressed these claims, with ₹6.30 crore paid upfront and the balance to be settled on a pro-rata basis. The decision reinforces the IBC’s role in reviving stressed assets and balancing stakeholder interests. For Nuvoco, the acquisition strengthens its footprint in Western India, enhancing production capacity and regional market reach. It also underscores growing confidence in India’s corporate insolvency resolution mechanism.