Adani is on the verge of purchasing a bankrupt Mumbai builder at a 98% discount

According to a person familiar with the situation, Adani Goodhomes Pvt. is one step closer to acquiring Radius Estates and Developers Pvt. at a 98% discount to what the bankrupt company's creditors were seeking.

According to the person, Adani promised to pay 319.7 million rupees ($4 million) to financial creditors, compared to their request for 16.58 billion rupees and 15.2 million rupees to employees. The purchaser, which is part of billionaire Gautam Adani's business, has also vowed to deliver to Radius clients 700 premium residences worth more than 8 billion rupees by June 2024.

The National Company Law Tribunal authorised Adani's bid for Radius, Radius' erstwhile partner DB Realty notified the stock exchange on Monday without providing financial information.

Last year, the NCLT denied a petition filed by several of Radius' creditors alleging wrongdoing in the bidding process. The case is still in court, and there is no set timetable for a final decision.

An email requesting response from the Adani group was not returned after business hours on Monday. The Radius bankruptcy resolution professional did not immediately respond to an email.

Ten BKC, located in Mumbai's emerging financial sector, is the project Adani might acquire with this winning bid. Bandra Kurla Complex, or BKC, is home to the headquarters of numerous local and worldwide banks in the South Asian country and is close to Dharavi, the world's largest slum, which Adani has also been awarded the contract to renovate.

Ten BKC is situated across 5 acres and is expected to generate Rs 2,500 crore in revenue when completed, according to the source.

At 9:56 a.m., DB Realty rose 0.90 point to Rs 89.90.