Stock markets in India are presently trading marginally higher. Among the sectoral indices, PSU stocks and metal stocks are witnessing maximum selling pressure. While IT stocks and FMCG stocks are trading in green.

The BSE Sensex is trading higher by 98 points (up 0.3%), and the NSE Nifty is trading higher by 21 points (up 0.2%). Meanwhile, the BSE Mid Cap index is trading up by 0.3% while the BSE Small Cap index is trading up by 0.5%. The rupee is trading at 71.15 to the US$.

Cement stocks are trading on a mixed note with Heidelberg Cement & Mangalam Cement leading the pack of gainers. In the latest development, Binani Cement has become a wholly-owned subsidiary of UltraTech Cement effective Tuesday.

This follows Supreme Court’s ruling on Monday upholding a National Company law Appellate Tribunal (NCLAT) order that approved the Aditya Birla group company’s offer to pay about Rs 80 billion for the stressed asset of Binani Cement in an insolvency-driven process.

Reportedly, UltraTech has acquired Binani Cement’s 6.25-million tonnes per annum (mtpa) plant in Rajasthan, including an integrated cement unit and a split grinding unit, for Rs 80.2 billion.

This acquisition gives the company access to superior-quality limestone reserves. Binani’s subsidiaries in China and the UAE also stand transferred to UltraTech.

With the addition of the Binani asset, UltraTech’s network has grown to 50 plants across India. Its overall capacity is currently at 98.75 mtpa with an additional four mtpa being commissioned.

Talking of the Insolvency and Bankruptcy Code (IBC), it is important to consider the recent successful recoveries.

If we consider two successful closures, i.e. Bhushan Steel and Electrosteel, the lenders have already recovered close to Rs 421 billion.

The government expects close to Rs 1.8 trillion through the IBC. Similarly, banks expect to write back more than Rs 1 trillion from the resolution of the ‘Dirty Dozen’ constituting 12 big NPA accounts referred to IBC by the RBI.