Bidders Raise Offers in Lavasa Corp's Third Round; Valor Estates Leads
Mumbai: In a significant development, all three bidders have raised their financial offers for the debt-laden Lavasa Corp in the third round of bidding. This intensifies the competition for what was initially billed as the first hill town to be built in Independent India. Valor Estates has substantially upped its bid to ₹946 crore on a net present value (NPV) basis, putting it ahead of the other two bidders.
The Welspun-Ashdan combine has also increased its bid to ₹845 crore from ₹776 crore on an NPV basis. This has placed the Mumbai-based Yogayatan Group at the third position with a total NPV of ₹830 crore, according to people familiar with the development.
Despite the increased bids, the Welspun consortium has scored higher than both the other bidders based on the evaluation matrix. 'All three bidders substantially increased their bids after they were given another chance. By the looks of it, this battle will now continue because bankers will have to thoroughly go through the bids,' said a person familiar with the details.
Creditors to the debt-laden Lavasa Corp had extended the timeline for the resolution process, giving bidders another chance to increase their bids for the real estate venture. This extension was forced after one of the bidders, Valor Estates, submitted an improved revised plan.
Last week, the Mumbai-based Yogayatan Group filed a petition in the National Company Law Tribunal (NCLT) opposing creditors' move to allow revised resolution plans for taking over the debt-laden Lavasa Corp. Yogayatan was opposed to calling for another round of bids because it had emerged as the highest bidder, with its offer of ₹795 crore on an NPV basis.
Despite its opposition, Yogayatan submitted a revised bid. 'This time, despite its opposition, Yogayatan submitted a revised bid. It remains to be seen whether it acts on its NCLT plea or prefers to improve its bid further because it does not look like we have seen the last of this story,' said another person aware of the details.
Any litigation at this stage is likely to delay the process. EY-backed resolution professional Udayraj Patwardhan and process advisor BoB Capital Markets did not reply to an email seeking comment.
