FCC

Valor Tops Bidding for Lavasa With Rs 7.71 Billion Offer

2025-07-14

Valor Estate (formerly DB Realty) has emerged as the top bidder for Lavasa Corporation with a Rs 7.71 billion offer, marking a key milestone in resolving the long-pending insolvency of the stalled hill city near Pune.

Following a 10-round competitive challenge under the Corporate Insolvency Resolution Process (CIRP), Valor’s bid on a net present value basis surpassed other contenders, including Welspun Group and Lodha Developers. Lavasa, once touted as India’s first planned hill city, had accumulated debt of over Rs 66.42 billion, deterring resolution efforts in the past.

However, Valor’s proposal remains conditional, with environmental clearances forming a critical hurdle. Regulatory challenges have repeatedly delayed Lavasa’s revival, and land title complexities continue to be a concern for lenders. The Committee of Creditors has invoked a 90-day extension for evaluating bids and ensuring all legal checks are completed.

The second-highest bid was from Welspun Group at Rs 7.5 billion, followed by Yogayatan Group’s Rs 7.25 billion. This marks the third major attempt to resolve Lavasa’s insolvency, after a Rs 18.14 billion plan by Darwin Platform Infrastructure collapsed due to non-payment issues in 2023.

Valor Estate’s stock performance has seen moderate movement. On 11 July 2025, shares opened at Rs 243.39, peaked at Rs 243.60, and closed at Rs 242.90, up 0.24 per cent. The stock has gained 3.19 per cent over the past week, 1.24 per cent over the past month, and 39.21 per cent over the last three months.

While the bid positions Valor Estate as the frontrunner, the outcome hinges on regulatory approvals and smooth execution—factors that have historically plagued the Lavasa project.