Jaiprakash Associates shines on plan to sell Gujarat-based cement units for Rs 4,000 crore

16 Apr 2013

Jaiprakash Associates is currently trading at Rs. 73.70, up by 1.25 points or 1.73% from its previous closing of Rs. 72.45 on the BSE.

The scrip opened at Rs. 71.90 and has touched a high and low of Rs. 74.05 and Rs. 71.55 respectively. So far 707650 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 2 has touched a 52 week high of Rs. 106.75 on 12-Dec-2012 and a 52 week low of Rs. 58.05 on 24-May-2012.

Last one week high and low of the scrip stood at Rs. 74.05 and Rs. 63.05 respectively. The current market cap of the company is Rs. 16265.88 crore.

The promoters holding in the company stood at 44.74% while Institutions and Non-Institutions held 36.73% and 18.53% respectively.

In a bid to reduce its debt pile, Jaiprakash Associates is planning to sell its Gujarat-based cement units for Rs 4,000 crore. The company’s consolidated debt stood at Rs 53,174 crore as of March 2011. Its standalone debt, as of September 2012, was Rs 19,549 crore.

Earlier, the company was in talks with the Birlas to sell the cement units. However, as its expected valuation of $170 a tonne was very high, it failed to seal the deal.

Jaiprakash Associates, in last year, divested its cement units in Gujarat and Andhra Pradesh into a separate company, Jaypee Cement, in order to monetize a part of its investments to help the parent company reduce its debt. Jaypee group’s cement division currently operates modern, computerized process control cement plants with an aggregate capacity of 21.3 MTPA.

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