Birla Corporation Limited (BSE:500335) is the front runner to acquire Reliance Cement Company Private Limited from Reliance Infrastructure Ltd (BSE:500390) and is in advanced commercial negotiations, three people close to the matter said. The other serious bidder in race was The Blackstone Group, Private Equity Group, which had teamed up with Sumit Banerjee, former vice chairman of Reliance Cement. Blackstone and Baring Private Equity Asia are also seen as the other top contenders, people in know of the development said.

Birla's offer in the range of INR 50 billion – INR 51 billion is said to be in line with Reliance Group's expectations. The PE bids were pegged at INR 42 billion – INR 45 billion, said the people. A shortlist had been drawn up after final offers were submitted on December 25, 2015.

Others who filed preliminary expressions of interest included Baring Private Equity Asia, The Carlyle Group LP (NasdaqGS:CG), JSW Cement Limited, JK Lakshmi Cement Limited (BSE:500380) and China Resources Cement Holdings Ltd. (SEHK:1313). A final decision is expected in the next fortnight but an announcement may come as early as next week. In a regulatory filing Reliance Infrastructure said: "We are at an advanced stage of discussions with potential buyers for divesting the Cement business.

The proceeds of divestment will be utilized for reduction of the overall debt." Meanwhile in a BSE filing, Birla said: "With a view to expand cement business, the company keeps on evaluating and discussing various opportunities as may be available from time to time. However, no proposal has reached the stage, which would merit intimation under the Listing Regulation."