Jaiprakash Associates (JP Associates) is reportedly in the final stage of talks with Ultratech cement to sell stake in its 4.8 million tonne Cement Plant in Gujarat. The deal value will be around Rs 3700 crore, which will help the company bring down its debt. The company’s total consolidated debt stands at over Rs 63,000 crore. Moreover, the deal would value company’s cement plant at EV/Tonne of $128.
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.