MUMBAI, July 5: Jaypee Group stocks today rose sharply by up to 38 per cent after the debt-ridden group raised the sale value of 21.2 mtpa cement assets to Aditya Birla Group firm UltraTech to Rs 16,189 crore.
Shares of Jaiprakash Associates (JAL) zoomed 37.66 per cent to Rs 12.50 on BSE.
Buying was also seen in other group stocks where Jaypee Infratech surged 20 per cent to Rs 10.98 and Jaiprakash Power Ventures soared 18.39 per cent to Rs 6.05.
The decision was taken yesterday at the board of directors meeting of the Jaypee Group flagship firm Jaiprakash Associates, convened at short notice, to discuss the progress of divestment plans and other issues.
UltraTech Cement has also agreed to pay an additional amount of Rs 470 crore for completion of 4 million tonne per annum (MTPA) grinding unit in Uttar Pradesh.
“The board of directors of Jaiprakash Associates has approved amendment to the definitive agreement dated March 31, 2016 and the draft scheme of arrangement with UltraTech Cement for sale of cement business of JAL and its subsidiary, Jaypee Cement Corporation comprising identified operating cement plants with an aggregate capacity of 17.20 mtpa… Besides a grinding unit of 4 mtpa,” JAL said in a statement.
“The total enterprise value now agreed is Rs 16,189 crore. An additional amount of Rs 470 crore shall be paid by UTCL for completion of the griding unit under implementation.”
Jaypee Group Executive Chairman Manoj Gaur said: “The group is determined to reduce its overall debt through its proactive divestment initiatives to help the group tide over these current turbulent times caused by economic slowdown in the country.” (PTI)
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