Reliance Infrastructure is expected to get final bids from the shortlisted bidders for the sale of its cement business by 24 December 2015, according to sources close to the sale process.
Last month the company announced it would be divesting of its cement and roads segments to focus on its defence business. In March 2015, Reliance announced it would be acquiring Pipavav Defence & Offshore Engineering Co in an all-cash deal.
In terms of the sale of its cement unit, Reliance said it had shortlisted seven potential buyers who had submitted preliminary expressions of interest. According to local media speculation, potential buyers include private equity firms and India-based cement producers JSW Cement Ltd and JK Lakshmi Cement Ltd. The lead bankers for the sale process are Morgan Stanley and SBI.
"Due diligence process is over and the binding bids should come in by December 24," a source familiar with the deal told the Financial Express (India).
MS Mehta, CEO, Reliance Infrastructure recently said that the company is hoping to close the sale of cement and road businesses by March 2016. The proceeds from the divestment of these assets will be primarily utilised by Reliance Infrastructure to complete the Pipavav Defence acquisition and for the retiring of debt.