Mumbai based Yogayatan Group has emerged as the highest bidder for the debt laden Lavasa Corporation increasing its bid to Rs 795 crore on a net present value (NPV) basis from Rs 725 crore previously. Bidders had been given an opportunity to improve their bids after the first round of bidding earlier this month.
Yogayatan’s sharp increase in bid means that it has surpassed Valor Estates‘ offer of Rs 771 crore. Valor, formerly DB Realty, did not increase its bid in the latest round. The third bidder in the fray, Welspun Group also increased its bid to Rs 785 crore on a NPV basis from Rs 750 crore in the first round.
“At this stage Yogayatan has moved ahead. But in a surprising turn of events late on Thursday Valor said it wants to now up its bid. The committee of creditors will meet on Friday to decide what to do now,” said a person aware of the details.
All the plan timelines are as long as five years with bidders staggering payments in the later part of the resolution plans to deal with uncertainties. Late evening queries to EY-backed resolution professional Udayraj Patwardhan, did not receive a response. Individual bidders could not be reached.
Lavasa was promoted as India’s first privately built and managed city at the turn of the century, targeting rich urban natives from Mumbai and Pune wanting to escape the noise and pollution of their cities. Modelled after the Italian fishing village, Portofino, it was planned like a gated city with space for a golf course, rowing and even a football academy. However, it went bust and was admitted to bankruptcy in 2018.
Lenders are grappling with a complex resolution including land titles, pending regulatory approvals, and environmental concerns in the second major attempt to resolve Lavasa’s insolvency, after previous bids, including a Rs 1,814 crore plan approved in July 2023 from Darwin Platform Infrastructure (DPIL), failed due to non-payment of the upfront amount.
