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Lodha raises Finlay bid

india Updated: Jul 25, 2009 01:02 IST
Naresh Kamath
Naresh Kamath
Hindustan Times
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The Lodha Group has upped its bid for the Parel-based Finlay Mills to Rs 710 crore from Rs 657 crore it had quoted earlier. This is being seen as a major sign of revival of the real estate market.

On Thursday, the Lodha Group emerged the highest bidder for the National Textile Corporation (NTC)-run Finlay Mills quoting Rs 657 crore, much less than the reserve price of Rs 710 crore.

The NTC had fixed Rs 710 crore as the reserve price and there was reluctance to hand over the 10.4-acre plot below this price.

Of the 25 mills on the block, five mills have been sold by the NTC but none have been given below the reserve price.

In a meeting with the NTC officials, the Lodha Group had agreed to increase the amount. “We are determined to get the mill and hence we have increased the rate,” said Abhisheck Lodha, Director, Lodha Group. “We still think it is a good price,” he added.

The Lodha group, which bid under Padmavati Buidtech and Farms Private Limited, plans to build a mix of commercial and residential complex on the mill land.

K Ramchandran Pillai, NTC chairman and managing director, was happy about the enhanced bid calling it a great price. “We are happy that they have matched our reserve price,” said Pillai. He said the final decision would be taken by the NTC committee.

This was the third time Finlay has been put up for auction as the previous attempts have come to the naught.

In December when the bid was opened for the first time, the bidding amount was Rs 450 crore compared to the reserve price of Rs 1,066 crore.

In the second attempt, only one bidder arrived but was disqualified as he failed to submit the earnest amount of Rs 100 crore.