According to various sources, US buyout firm KKR and Ultra-Tech are in the race to acquire the cement division of Jaiprakash Associates. Dalmia Bharat Cement has also put in a bid.
Each of the non-binding bids has put an enterprise value in excess of Rs18 000 crore on the 21 million tpy business.
The hopeful bidders are expected to enter into separate agreements shortly to initiate due diligence that will be completed in the next four weeks.
The deal is expected to reach an enterprise value of between Rs18 000 crore and Rs19 000 crore.
In December 2014, UltraTech had agreed to acquire Jaiprakash Associates' integrated cement plant with clinker capacity of 2.1 million tpy and cement grinding capacity of 2.6 million tpy at Bela in Madhya Pradesh for Rs5400 crore.