All three bidders have boosted their financial offers for the struggling Lavasa Corp during the third round of bidding, increasing the competition for what was originally set to be India’s first hill town.
Valor Estates has significantly raised its bid to ₹946 crore based on net present value (NPV), placing it in the lead among the contenders.
The Welspun-Ashdan consortium has also hiked its bid to ₹845 crore from a previous offer of ₹776 crore on an NPV basis, leaving the Mumbai-based Yogayatan Group in third place with an NPV of ₹830 crore, according to sources familiar with the situation.
Meanwhile, the Welspun consortium has outperformed the other bidders according to the evaluation matrix.
“All three bidders have notably increased their offers after receiving another opportunity. It appears this battle will continue as bankers rigorously review the bids,” said a source with knowledge of the matter.
Creditors of Lavasa Corp, which is burdened with debt, extended the timeline for the resolution process, allowing bidders another chance to enhance their offers for the real estate project, as reported in RealtyDailyNews’s August 7 edition. This extension was prompted by Valor Estates submitting a revised and improved plan.
Last week, the Yogayatan Group, based in Mumbai, filed a petition with the National Company Law Tribunal (NCLT) opposing the creditors’ decision to permit revised resolution plans for acquiring Lavasa Corp.
Yogayatan’s opposition stemmed from its prior status as the highest bidder, with an offer of ₹795 crore based on NPV.
“Despite opposing another round of bids, Yogayatan submitted a revised offer this time. It remains unclear whether they will pursue their NCLT plea or opt to further increase their bid, as this situation is far from resolved,” noted another source familiar with the developments.
Any litigation at this stage could further delay the process.
Udayraj Patwardhan, the EY-backed resolution professional, along with process advisor BoB Capital Markets, did not respond to an email for comments.
BoB Capital will evaluate the plans using a matrix that includes criteria beyond NPV, giving weight to recovery certainty, upfront cash, execution capabilities, and risk management.
“The Welspun-led consortium may receive higher scores due to their substantial upfront cash commitment, financial strength, implementation credibility, and institutional support,” remarked a knowledgeable source.
The Welspun-Ashdan consortium has also pledged a larger upfront payment of ₹65 crore, compared to ₹50 crore from Valor’s bid. Such factors are expected to influence the creditors’ decisions.
Creditors are expected to convene later this week to assess the proposals and determine the next steps.
“With ongoing litigation, aggressive bidders, and lenders seeking the best value, this narrative could extend further,” stated a second source familiar with the matter.
